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<\/p>\n Read in app<\/p>\n <\/a> <\/p>\n This story is available exclusively to Business Insider Stocks are sliding for a third day amid a software-related sell-off. Not everyone in finance and tech is sold on the idea that AI is going to kill the software business.<\/p>\n Wall Street’s fears of AI-related disruption has been driving a sell-off of software stocks<\/a> after the release of Anthropic’s new industry-specific plug-in.<\/p>\n From Nvidia’s CEO dismissing the concerns, to Zoho’s founder acknolweding the industry is “ripe for consolidation,” here’s what leaders in tech and finance are saying:<\/p>\n Jensen Huang<\/p>\n Nvidia CEO Jensen Huang said that companies like ServiceNow remain bright spots in the software industry.<\/p>\n Steve Marcus\/REUTERS <\/p>\n Nvidia CEO Jensen Huang said software is a tool<\/a> for AI to use, rather than replace.<\/p>\n “There’s this notion that the tool industry is in decline and will be replaced by AI,” Huang said during a recent Cisco AI event. “You could tell because there’s a whole bunch of software companies whose stock prices are under a lot of pressure because somehow AI is going to replace them. It is the most illogical thing in the world and time will prove itself.”<\/p>\n Huang named ServiceNow, SAP, Cadence, and Synopsis, as bright spots in the industry.<\/p>\n Sridhar Vembu<\/p>\n Sridhar Vembu, founder of Zoho, a cloud-based software company, said SaaS was “ripe for consolidation” long before the rise of AI.<\/p>\n “An industry that spends vastly more on sales and marketing than on engineering and product development was always vulnerable,” he wrote<\/a> on X. “The venture capital bubble and then the stock market bubble funded a fundamentally flawed, unsustainable model for too long. AI is the pin that is popping this inflated balloon.”<\/p>\n Vembu said he asks his employees to consider the possibility of the company’s death.<\/p>\n “When we accept that possibility, we become more fearless and that is when we can calmly chart our course.”<\/p>\n Steven Sinofsky<\/p>\n Steven Sinofsky said it’s just “nonsense” to think AI will replace software.<\/p>\n Reuters <\/p>\n Steven Sinofsky, who helped lead the development of Windows 7 and 8, said AI may change “what we built and who builds it,” but tales of software’s demise are just “nonsense.”<\/p>\n “Wall Street is filled with investors of all types. There’s also a community, and they tend to run in herds. The past couple of weeks have definitely seen the herd collectively conclude that somehow software is dead. That the idea of a software pure play will just vanish into some language model,” Sinofsky wrote<\/a> in a lengthy post on X. “Nonsense.”<\/p>\n Sinofsky said it is true some companies will fail. He also noted that such cycles have happened in retail and media.<\/p>\n “Strap in,” he wrote. “This is the most exciting time for business and technology, ever.”<\/p>\n Rene Haas<\/p>\n Arm CEO Rene Haas said the market reaction is “micro-hysteria.”<\/p>\n Reuters <\/p>\n Arm CEO Rene Haas isn’t panicking.<\/p>\n “As I look at enterprise AI deployment, we aren’t anywhere close to where it can be,” Haas told<\/a> the Financial Times.<\/p>\n Haas, who leads the SoftBank-owned semiconductor company, said the current market reaction is “micro-hysteria.”<\/p>\n Stephen Parker<\/p>\n
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\n Recent AI advancements have undermined some investors’ faith in established software names.
\n Jensen Huang<\/a>, Arm CEO Rene Haas, and former Microsoft exec Steven Sinofsky are skeptical of the market’s reaction.<\/p>\n<\/p>\n
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