tech
February 26, 2026
Market watchers back Jensen Huang's view that investors are 'wrong' on SaaSpocalypse
Nvidia CEO Huang told CNBC that software will not be displaced by artificial intelligence.
TL;DR
- Investors feared AI would make software-as-a-service (SaaS) obsolete, leading to a sell-off dubbed the 'Saaspocalypse'.
- Nvidia CEO Jensen Huang stated that investors 'got it wrong', as AI agents will use existing tools on behalf of users, enhancing productivity.
- Market watchers agree that AI will amplify software tools, making companies like Salesforce and ServiceNow more valuable.
- Experts suggest focusing on 'AI infrastructure software' vendors that assist AI developers, citing Snowflake and Datadog as examples.
- SaaS companies need to quickly pivot from service-based to outcome-based models to capitalize on the AI era.
- Historical examples, like IBM's mainframes, show legacy software can persist through disruption.
- HSBC analysts predict software will significantly benefit from mainstream AI, potentially generating the most value.
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