In the face of widespread investor panic over artificial intelligence disrupting the software industry, NVIDIA CEO Jensen Huang has delivered a stark message: the recent global sell-off in software stocks is illogical. Speaking in February 2026, Huang directly challenged the narrative that AI will replace existing software tools, arguing instead that artificial intelligence will augment these systems and drive their usage to unprecedented levels.
AI won’t replace software tools but will augment them and drive their usage to unprecedented levels, says NVIDIA CEO Jensen Huang.
The software sector experienced significant declines as investors grew concerned about AI rendering traditional tools obsolete. This fear-driven sell-off affected software companies worldwide, with market participants questioning whether AI advancement would eliminate the need for conventional software infrastructure. The market turmoil was triggered by Anthropic’s release of specialized plug-ins for its Claude Cowork agent, which demonstrated the automation of complex white-collar tasks. Huang’s statements aim to counter this pessimistic view with a fundamentally different perspective on AI’s role.
According to Huang, AI does not make software tools irrelevant. Instead, AI integrates with existing software systems and uses them more extensively than human operators ever could. This augmentation model positions AI as an enhancer rather than a replacement, creating increased demand for software rather than destroying it. You should understand that AI requires software infrastructure to function, making these tools essential rather than expendable. Cloud-based platforms like Integration Platform as a Service help connect AI systems with existing applications and data.
The NVIDIA CEO emphasizes several key points that support his argument:
- AI operates through existing software frameworks rather than bypassing them
- Increased AI adoption drives higher software usage across industries
- Software remains fundamental infrastructure for AI operations
- No evidence suggests tools are becoming obsolete due to AI development
Huang’s perspective carries significant weight given NVIDIA’s central position in AI development. The company provides the hardware powering much of the AI revolution, giving Huang direct insight into how AI systems actually function and interact with software. His reassurance to investors challenges the replacement narrative that triggered the sell-off. Huang delivered these remarks during a Cisco event, reinforcing his position on AI’s augmentative role in the technology landscape.
The market implications are substantial. If Huang’s view proves correct, the software sell-off represents a misguided reaction to AI advancement rather than a rational response to genuine obsolescence risk. This suggests potential opportunities for investors willing to embrace the augmentation model over the replacement fear that currently dominates market sentiment.
