---
title: "Nvidia’s Jensen Huang says markets ‘got it wrong’ on AI threat to software companies"
description: "Nvidia CEO Jensen Huang stated that markets have misjudged the AI threat to software companies, emphasizing the importance of tools for effective work. Following a strong sales forecast driven by AI d"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276958062.md"
published_at: "2026-02-25T23:56:19.000Z"
---

# Nvidia’s Jensen Huang says markets ‘got it wrong’ on AI threat to software companies

> Nvidia CEO Jensen Huang stated that markets have misjudged the AI threat to software companies, emphasizing the importance of tools for effective work. Following a strong sales forecast driven by AI demand, Nvidia reported a 73% revenue increase to $68.13 billion for the fiscal fourth quarter, surpassing expectations. The company anticipates first-quarter revenue of $78 billion, exceeding analyst forecasts, despite investor concerns about sustainability in AI hardware spending.

Nvidia CEO Jensen Huang delivers a keynote address at the Consumer Electronics Show in Las Vegas, Nevada, on Jan. 6, 2025.

Patrick T. Fallon | Afp | Getty Images

Nvidia CEO Jensen Huang said Wednesday markets have miscalculated the AI threat to software companies in an interview hours after the chip behemoth issued an upbeat sales forecast on strong AI demand.

"I think the markets got it wrong," Huang said. "Nobody's going to service better than ServiceNow, and they're going to come up with agents that are really fine-tuned and optimized for the work that uses the tools that they have."

"In the end, we need the tools to finish their work and put the information back in a way that we can understand," he told CNBC's Becky Quick.

Nvidia's revenue for the fiscal fourth quarter climbed 73% to $68.13 billion from a year earlier, beating analysts' estimates for $66.21 billion.

The company issued an upbeat guidance with revenue for the fiscal first quarter to be $78 billion, plus or minus 2%, well above analysts' forecast for $72.6 billion.

Investors had grown weary that the massive run-up in spending on AI hardware might not be sustainable, stoking fears of a bubble building in the sector.

***This is breaking news. Please refresh for updates.***

### Related Stocks

- [XLK.US - Spdr Select Tech](https://longbridge.com/en/quote/XLK.US.md)
- [SMH.US - VanEck Semiconductor ETF](https://longbridge.com/en/quote/SMH.US.md)
- [NVDX.US - T-Rex 2X Long NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDX.US.md)
- [NVDY.US - YieldMax NVDA Option Income Strategy ETF](https://longbridge.com/en/quote/NVDY.US.md)
- [NVDD.US - Direxion Daily NVDA Bear 1X ETF](https://longbridge.com/en/quote/NVDD.US.md)
- [NVDL.US - GraniteShares 2x Long NVDA Daily ETF](https://longbridge.com/en/quote/NVDL.US.md)
- [SOXX.US - iShares Semiconductor ETF](https://longbridge.com/en/quote/SOXX.US.md)
- [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md)
- [XSW.US - SPDR S&P Software](https://longbridge.com/en/quote/XSW.US.md)
- [NVDQ.US - T-Rex 2X Inverse NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDQ.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Gitterman Wealth Management LLC Acquires 4,297 Shares of NVIDIA Corporation $NVDA | Gitterman Wealth Management LLC increased its stake in NVIDIA Corporation by 109.7% in Q3, acquiring an additional 4,297 | [Link](https://longbridge.com/en/news/276716473.md) |
| Singtel’s Digital InfraCo accelerates sovereign AI innovations with Center of Excellence for Applied AI with NVIDIA | Singtel’s Digital InfraCo has launched a Center of Excellence (CoE) for Applied AI in collaboration with NVIDIA, aimed a | [Link](https://longbridge.com/en/news/276851857.md) |
| Nvidia deepens early-stage push into India’s AI startup ecosystem | Nvidia is intensifying its engagement with India's AI startup ecosystem by forming partnerships aimed at early-stage com | [Link](https://longbridge.com/en/news/276396822.md) |
| Nvidia's results beat estimates, but Wall Street wants more cash return | Nvidia reported better-than-expected results for the January quarter, forecasting revenue above market estimates, driven | [Link](https://longbridge.com/en/news/276964033.md) |
| Nvidia Q4 Preview: Wall Street's Desperate For Good News — Can The AI Giant Deliver? | Nvidia is set to report its Q4 earnings on Wednesday, with analysts expecting revenue of $65.64 billion and earnings per | [Link](https://longbridge.com/en/news/276780175.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.