Jensen says "market got it wrong" on software stocks
u/ChillMeerkat ·
Reddit — r/stocks
· February 26, 2026 at 12:24
· ⬆ 414 pts
· 💬 171 comments
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Summary
The post summarizes comments from a CNBC interview with "Jensen" (presumably Jensen Huang, CEO of NVIDIA), arguing that AI agents will increase, not decrease, the use of existing SaaS tools.
The author's thesis is that established software companies, which provide the "system of record," are undervalued because the market misunderstands the relationship between AI agents and SaaS, viewing it as replacement rather than symbiosis.
Quality assessment: This is speculation based on a high-level conceptual argument from a prominent industry figure. It lacks specific data, company analysis, or financial modeling.
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Yesterday in a cnbc interview he said "agents won't replace tools, they will use tools" in a context where tools are SaaS. He even thinks tools use will go up because the number of agents growing fast. Compared agents to robots who in the future will use the already existing tools (microwave, bolts, etc) instead of reinventing the wheel.
He emphasizes that established software companies provide the "system of record" (ground truth data). AI agents will need these systems to finish their work and store information in a way humans can understand
I share his view. What you think about it?
Jensen Huang argues that AI agents will use existing software tools (SaaS) rather than replace them, increasing their usage. Established software companies provide the essential "system of record" for these agents. The market has incorrectly priced in a threat to SaaS from AI, creating a valuation gap. As the symbiotic relationship between AI agents and SaaS becomes clear, these software stocks should re-rate higher. The post implies a long position on established software companies, as the market's fear of AI disruption is misplaced and will likely correct, leading to price appreciation. The Technology Select Sector SPDR Fund (XLK) is a good proxy for this broad thesis. Jensen's vision may be wrong or take much longer than expected to materialize. New, AI-native platforms could emerge that disrupt the incumbents, making their "system of record" obsolete. The market may continue to favor AI infrastructure over software applications for the foreseeable future.
This Reddit post, published February 26, 2026,
features u/ChillMeerkat
discussing XLK.
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