Nvidia CEO Jensen Huang argues software companies will benefit from AI rather than be displaced by it, pointing to Veeva Systems and Adobe as stocks that could rebound as they integrate AI into their products.

What happened: Jensen Huang, Nvidia's CEO, stated at a recent technology trade show that it is a great time to be a software company, as AI could improve their products and services rather than replace them. The article highlights Veeva Systems and Adobe as two SaaS leaders that have been sold off by investors but continue to post solid financial results and are adding AI capabilities to their offerings.

Why it matters: Wall Street has been bearish on software companies, with some investors and analysts believing AI will render many software products obsolete. Huang's contrarian view suggests this concern may be overblown. Veeva Systems' revenue increased 16% year over year to $882.9 million（約1400億円） in its first quarter of fiscal 2027, and Adobe's revenue rose 13% year over year to a record $6.62 billion（約1.1兆円） in its second quarter of fiscal 2026, indicating the business fundamentals remain strong even as skepticism about the sector persists.

What to watch: Veeva Systems sees a more than $20 billion（約3.2兆円） addressable market opportunity against trailing-12-month revenue of only $3.3 billion（約5300億円）, suggesting significant room for growth. Adobe reported that its AI-first Annualized Recurring Revenue grew 3x year over year to greater than $500 million（約800億円）, demonstrating early traction from its AI tool integration efforts.