NVIDIA CEO Jensen Huang stated that Wall Street misunderstands the software sector, arguing that agentic artificial intelligence will augment, not replace, existing enterprise products. Huang suggested companies like ServiceNow will develop specialized AI agents. Following NVIDIA’s recent earnings beat, major firms including Citigroup, BofA, and Sanford C. Bernstein revised their stock targets upward, reflecting continued analyst confidence in the company’s fundamentals despite broader market volatility.
NVIDIA CEO Jensen Huang contends that software stocks are positioned for growth, stating Wall Street currently misjudges the industry. He argued agentic AI will utilize existing enterprise software rather than displace it.
It’s very likely these [software] companies that we’re talking about are going to introduce agents that run on their platforms. Huang specifically pointed to ServiceNow as a company that could create fine-tuned customer service agents. He advised people to conceptualize AI agents similarly to future physical robots using available tools.
A wave of stock target activity followed NVIDIA’s latest earnings report, which surpassed expectations. Firms like Citigroup, BofA, and Sanford C. Bernstein adjusted their outlooks, sending investors to assess the implications for price movement.
NVIDIA’s stock is trading near the top of its 52-week range and above its 200-day simple moving average. It appeared poised to return to $200, potentially higher if the tech rally persists.
Some market caution exists due to macroeconomic headwinds, reflected in recent volatility where stocks pulled back after major news. However, the upward revisions from major analysts signal a continued belief in the company’s fundamental valuation case.
