Amid the recent sell-off in software stocks driven by AI-related fears, NVIDIA CEO Jensen Huang made a public statement during an event hosted by Cisco. He bluntly pointed out that the market's concern about AI replacing software tools is "the most illogical thing in the world."

Recently, as companies like Anthropic released powerful AI models, the market has generally worried that a large amount of internal work within companies would be automated, leading to continuous declines in software-related stocks. In response to this sentiment, Huang used an illustrative analogy: "Software products are essentially tools, and the role of AI is to use these tools, not to reinvent them." He questioned investors: when you have artificial intelligence, would you choose to use it to operate existing "screwdrivers," or would you rather invent a new "screwdriver"?

Huang further shared NVIDIA's internal experiences. He revealed that the company has widely adopted and used various AI tools, which did not lead to layoffs or a decline in software quality, but instead saved employees a lot of time on tedious tasks. This freed-up time allowed employees to focus more on NVIDIA's core competencies - semiconductor design and computer system development.

In Huang's view, AI is reshaping productivity, but this transformation is not a destructive replacement; rather, it enhances efficiency by empowering existing tools. He believes that the current sell-off reflects a misunderstanding of the logic behind technological change, overlooking the ongoing value of software as an infrastructure.

Key Takeaways:

  • 🛠️ The Theory of Tool Evolution: Huang believes AI is a master at using software tools, not the grave-digger of software, emphasizing the irreplaceability of tools with the "screwdriver" metaphor.

  • 📈 Internal Efficiency Improvement Practice: NVIDIA successfully liberated employees from repetitive labor by extensively applying AI tools, allowing them to focus more on high-value core businesses such as semiconductor design.

  • 📉 Warning Against Market Misinterpretation: Huang criticized the recent sell-off in software stocks, believing that betting against the software industry due to concerns about AI automation is an illogical action.