Jensen Huang Says Markets Miscalculated AI Threat to Software Firms After Nvidia Posts Q4 Beat

[https://www.ibtimes.co.uk/nvidia-q4-success-ai-demand-market-misconceptions-1781720](https://www.ibtimes.co.uk/nvidia-q4-success-ai-demand-market-misconceptions-1781720)

Nvidia reported a fiscal Q4 beat and better-than-expected Q1 revenue guidance amid robust demand for AI.

Quarterly revenue soared 73% year-over-year to $68.13 billion, calming fears that higher spending on AI hardware might not be sustainable.

Despite the better-than-expected financial results, global memory shortage remains a concern for investors, and Nvidia expects supply chain headwinds in Q1 fiscal 2027 and beyond. However, Nvidia CEO Jensen Huang said that the markets got it wrong about the AI threat to the enterprise software industry.

He explained that diverse software firms will start using agentic AI for innovation and enhanced operational efficiency, and AI agents won't replace software tools but will use them.

'I think the markets got it wrong.. Agents are tool users. All of these tools that we use today, whether it's Cadence or Synopsys or ServiceNow or SAP, these tools exist for a fundamentally good reason. These agentic AI will be intelligent software that uses these tools on our behalf and help us be more productive,' Huang explained.