Nvidia CEO Says AI Can Lift Software Stocks

Nvidia CEO Jensen Huang says AI could improve software companies, not replace them.

Jensen Huang, CEO of Nvidia, told a recent technology trade show audience that software firms may benefit as AI upgrades products and services. The pitch lands as investors have punished software names on fears that generative AI will make many applications obsolete.

What changed

The article points to two software names that could benefit if Huang is right: Veeva Systems and Adobe. Both have seen their shares weaken, but both are also adding AI features rather than waiting for disruption to hit.

Veeva sells cloud software to life sciences companies and says 15 of the top 20 biopharma firms are customers. In its fiscal first quarter of 2027, revenue rose 16% year over year to $882.9 million, while adjusted EPS increased to $2.24 from $1.97.

• Veeva launched Veeva AI, an agentic system aimed at automating routine tasks.
• Veeva says its total addressable market is more than $20 billion.
• Adobe posted record quarterly revenue of $6.62 billion in fiscal Q2 2026.
• Adobe said AI first ARR rose 3x year over year to more than $500 million.

Adobe is also showing that AI can add to an existing software business instead of replacing it. The company’s Q2 revenue rose 13% year over year, adjusted EPS climbed almost 18%, and management raised full-year adjusted EPS guidance.

Why it matters

For developers and investors, the message is simple: AI does not automatically erase software moats. In markets where switching costs are high and workflows are deeply embedded, AI can become a feature layer that increases usage and pricing power.

That is the core bull case here. Veeva and Adobe already have large customer bases, recurring revenue, and room to expand AI products inside existing platforms. If enterprise buyers prefer AI tools from vendors they already trust, these incumbents may capture more value than smaller standalone AI apps.

The stock call is less about one trade-show comment than about a broader test: can legacy software vendors turn AI into a sales driver before fear-driven selling goes too far?