Nvidia CEO Jensen Huang on AI's pressure on software stocks

Core Insights - The software industry is experiencing significant changes due to the rise of AI and cloud technologies, leading to market volatility and concerns about traditional companies [1][6][7] Group 1: Impact of AI on Software Development - AI is revolutionizing the software industry by enabling systems to perform tasks such as writing software and creating websites, which are referred to as agentic systems [2][3] - Companies will increasingly utilize agentic systems to enhance productivity rather than replace existing tools, as these agents will act as users of established software [3][4] - The number of programming instances and tool usage is expected to rise as more agents are integrated into companies, leading to a higher demand for software tools [5] Group 2: Role of Established Companies - Established companies like Salesforce and Service Now are likely to remain relevant as they will develop agents optimized for their platforms, countering market fears of disintermediation [6][7][8] - The systems of records maintained by these companies will continue to serve as the foundation for data management, with agents populating and utilizing these systems [9] Group 3: Future of Software Engineering - The role of software engineers will evolve, focusing more on problem-solving and innovation rather than traditional coding, as agents will handle the actual coding tasks [12][13] - This shift will allow engineers to work at a higher level of abstraction, potentially leading to increased productivity and the creation of new solutions [13][14]