Nvidia CEO: Fears of AI Replacing Software Are 'Illogical'

Gotrade News - Nvidia CEO Jensen Huang just threw cold water on the market's latest panic attack regarding AI killing off the software industry. This comes right after a global tech selloff hit the markets on Tuesday (03/02).

Investors initially freaked out thinking Anthropic's latest chatbot update would render traditional software tools obsolete. Huang insists that narrative is completely misguided and goes against the logic of how tech actually evolves.

Key Takeaways:

• Jensen Huang argues AI will supercharge existing software, not replace it entirely.

• The market panic was triggered by new Anthropic features that spooked the professional services sector.

• Tech stocks across Asia took a nosedive before Huang stepped in to clarify the situation.

The selling pressure didn't stop at the US border, bleeding into Asian markets by Wednesday (04/02). The fear of AI-driven disruption hammered software valuations across India, Japan, and China.

Speaking at an AI conference hosted by Cisco in San Francisco, Huang emphasized that the new wave of AI is designed explicitly to leverage existing tools.

Reuters reported Huang calling the notion of AI replacing software "the most illogical thing in the world." He believes time will prove that digital tools remain a vital part of the ecosystem.

The Nvidia boss made a solid point: whether you're a human or a robot, you use tools—you don't reinvent them from scratch. Smart tech creates efficiency, not redundancy.

The market didn't wait for the memo, though, as Indian IT exporters slumped 6.3%. Infosys took a massive 7.3% hit as investors priced in the fear of irrelevance.

It was ugly elsewhere too, with China's CSI Software Services Index dropping 3% amid the uncertainty. Over in Hong Kong, Kingdee International Software Group shares tumbled more than 13%.

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Reference:

• Reuters, Nvidia's Huang dismisses fears AI will replace software tools as stock selloff deepens. Diakses pada 4 Februari 2026

• Featured Image: Shutterstock