Remarks made at the "Cisco AI Summit" event
Jensen Huang, the CEO of NVIDIA, has pushed back against the recent wave of heavy selling in the software (SW) sector triggered by advances in artificial intelligence (AI) technology, calling it "the most illogical thinking in the world."
According to Reuters and Bloomberg, on February 4 (local time) Huang spoke at the "Cisco AI Summit" held in San Francisco, United States, and said, "Many software companies' share prices are under pressure on the grounds that AI will replace software companies," adding his criticism.
He explained, "If you ask whether human beings or robots will use tools or reinvent them, the obvious answer is that they will use tools," and added, "AI innovation is also focused on using tools (rather than inventing them), because those tools are clearly designed."
In other words, the development of AI will progress not by replacing software, but by making better use of existing software. As positive examples within the software industry, Huang explicitly cited ServiceNow, SAP, Cadence, and Synopsys.
He added that even within NVIDIA, the introduction of AI tools has freed up time for employees to focus on their core competencies of semiconductor and computer system design.
After AI model developer Anthropic recently released "Claude CoWork," which can substitute for services such as legal work, concerns have grown that AI will encroach on the software industry, leading to a broad-based decline in related stocks for a second straight day.
The iShares Expanded Tech-Software ETF (IGV), a leading exchange-traded fund (ETF) in the software sector, has fallen by about 18% year-to-date as of this date. Reuters noted that "the recent weakness in the software sector is being interpreted as part of a rotation (asset reallocation) occurring across technology stocks in general."
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