Jensen said that companies like Service Now cannot be replaced by ai, and Wall st and the retail folks were too regarded to realize it. Also, many companies laid off too aggressively, and will need to rehire. Does this mean calls on beaten down SaaS and cyber tech companies? Thoughts?
Why Nvidia’s Jensen Huang thinks the market got it wrong on software companies
byu/MBlaizze inwallstreetbets
Posted by MBlaizze
10 Comments
Easiest take ever. The market is often incredibly dumb when it comes to tech.
honestly jensen might be onto something here but i’d be careful about jumping straight into calls on every beaten down saas name. sure some of these companies got oversold when everyone panicked about AI replacing everything, but there’s still gonna be winners and losers in that space
the rehiring thing is interesting though – if companies really did cut too deep they’ll need those people back eventually and that could help the better positioned tech names
I can personally attest to this, in the case of Service Now. I really do not see how AI can replace or even assist me in what I do on daily basis. The same for Saleforce, which I used previously. However, the markets are always right, but the reasons maybe wrong. IMHO what is happening with software is derisking, or risk off to a shaky macro economics and K shaped economy. If the people are not doing okay, why should companies.
CEO says the future that will improve the value of his company will be our future.
After he praised vibe coding
His entire company’s fortune is dependent on software companies using AI
The whole thesis behind SaaS dropping is the per employee revenue model getting disrupted. Rerating on their multiple is completely justified if the trajectory of disruption stays the same.
The drop is probably an overreaction on some names but I don’t think recovery is gonna be back to where it used to be. Plus it is kind of in a doom loop for passive flow with Nasdaq cap weighting.
I took a sizable position in NOW when it dipped below $100. Daddy Jensen loves it so I love it
Holà !
Nice insight. In my opinion, this guy clearly knows what he’s talking about.
Old or new, 99% of people want ready-to-use tools. That’s just how it is.
Look at the old days of pirated music and movies through peer-to-peer apps or streaming websites. When platforms like Spotify or Apple Music came along, people quickly abandoned those poorly designed platforms that required configuration and weren’t intuitive. Instead, they preferred ready-made services where you could instantly listen to music without ads, without hassle, and without technical issues, in exchange for a small fee.
Most people will continue to use ready-to-use services rather than building their own systems with AI.
Only geeks will use AI to create and maintain their own custom-coded solutions.
That’s for personal SaaS projects. But when it comes to SaaS companies, they will always need humans and highly specialized technicians. I’m convinced of that.
AI is literally a bubble. AI has existed since computers were invented.
Cause I’m the guy that sells shovels.. Even to service now.. I don’t want them to stop buying shovels. So ai is coming for everyone.. Except people buying from me.