Nvidia CEO Jensen Huang Has Good News for Investors. Here Are 5 AI Stocks to Buy Now.

Core Viewpoint - The sell-off in software stocks is considered overdone by Nvidia's CEO Jensen Huang, who argues that the market has overreacted to concerns about AI disrupting the software industry [1][5]. Software Industry Overview - The S&P North American Technology Software Index has declined 30% from its peak, entering bear market territory, driven by fears surrounding AI's impact on software companies [1]. - Huang believes that AI tools will complement existing software rather than replace it, suggesting that the current market sentiment is illogical [5]. Attractive Software Stocks - Microsoft (MSFT): Stock down 27% from its high, currently trading at 26 times earnings, with adjusted earnings up 24% last quarter and a 160% increase in paid copilot seats [6]. - Datadog (DDOG): Stock down 47% from its high, trading at 53 times adjusted earnings, with adjusted earnings increasing 20% last quarter despite high R&D spending [7]. - AppLovin (APP): Stock down 52% from its high, trading at 45 times earnings, with earnings up 96% last quarter [8]. - Atlassian (TEAM): Stock down 70% from its high, trading at 22 times earnings, with adjusted earnings increasing 27% last quarter [9]. - HubSpot (HUBS): Stock down 73% from its high, trading at 25 times earnings, with adjusted earnings up 22% last quarter [9]. Market Outlook - While software stocks may continue to decline in the near term, long-term investors are likely to benefit from purchasing stocks at reasonable prices, anticipating significant earnings growth over the next five years [10].