Nvidia CEO Jensen Huang has publicly dismissed the growing fear that agentic AI will destroy major software companies, offering a bullish outlook for the broader industry.
Speaking at Computex, an international information technology show held in Taiwan, Huang addressed claims that AI would render established software businesses obsolete.
Huang acknowledged that many people have argued AI and agentic AI are coming and that “all of the software companies are going to go out of business,” but he flatly rejected that view.
The Nvidia founder stated “it’s exactly the opposite,” signaling his belief that AI will strengthen rather than erode the position of leading software players.
Huang also described the current moment as an “incredible” time to be a software company, suggesting that AI could actively enhance the products and services offered by top-tier industry players like Microsoft (NASDAQ: MSFT).
The remarks carry particular weight given Microsoft’s recent financial performance, which has remained strong despite the company’s shares declining roughly 17% over the past 12 months.
In the third quarter of its fiscal year 2026, ending March 31, Microsoft reported revenue of $82.9 billion, representing an 18% increase year over year.
Microsoft’s Azure and other cloud services revenue surged 40% compared to the same period a year earlier, underscoring robust demand for enterprise cloud infrastructure.
On the bottom line, the company posted adjusted earnings per share of $4.27, a 21% improvement over the prior year period, reflecting strong operational execution across its business lines.
Microsoft’s cloud backlog reached $627 billion at the end of the quarter, up 99% year over year, providing substantial near-term revenue visibility and suggesting continued momentum in cloud adoption.
The company’s AI business also crossed a notable milestone, surpassing a $37 billion annual run rate and growing 123% year over year, reinforcing the scale at which AI is already contributing to Microsoft’s core financials.
Huang’s comments arrive as investors weigh the long-term impact of AI disruption on legacy software businesses, with the Nvidia CEO offering a counterpoint to the more pessimistic narratives circulating across the technology sector.
