A number of stocks rose in the afternoon session after Nvidia CEO Jensen Huang dismissed fears that artificial intelligence would cannibalize the enterprise software sector.
Fast-growing names like Zscaler (ZS) and CrowdStrike (CRWD) staged significant recoveries as investors reevaluated the “AI headwinds” narrative that had previously weighed on valuations. Huang’s comments acted as a powerful catalyst, indicating that the intersection of generative AI and established software platforms is a symbiotic relationship rather than a zero-sum game. During a CNBC appearance, Huang argued that the market “got it wrong,” specifically defending the indispensable role of platforms like ServiceNow. He emphasized that these companies are uniquely positioned to deploy sophisticated AI agents that leverage their existing specialized tools.
The stock market overreacts to news, and big price drops can provide good opportunities to buy high-quality stocks.
The following stocks, among others, were affected:
Braze’s stock is extremely volatile, having seen 37 moves of more than 5% in the past year. In that context, today’s move indicates that the market sees this news as meaningful, but not as something that would fundamentally change its perception of the company.
The previous big move we wrote about was two days ago, when shares gained 9.8% on news that solid economic data, including a drop in consumer confidence, boosted sentiment.
The positive reports brought relief to the market, with the technology sector among the leaders. The Conference Board’s Consumer Confidence Index rose to 91.2 in February, indicating a more optimistic view of consumers’ income and business conditions. A recent announcement from Anthropic about new collaboration tools for its Claude AI agent software also helped calm investors’ nerves. The company’s move to expand its AI tools into sectors such as human resources and investment banking signals a potential for partnership rather than replacement. This shift in sentiment was reflected in the market, with the iShares Expanded Tech-Software Sector ETF rising 2.4% as investors bought back into beaten-down software stocks.
