What Happened?
A number of stocks jumped in the afternoon session after Nvidia CEO Jensen Huang dismissed fears that artificial intelligence would cannibalize the enterprise software sector.
High-growth names like Zscaler (ZS) and CrowdStrike (CRWD) saw significant rebounds as investors reassessed the "AI headwind" narrative that had previously weighed on valuations. Huang's comments acted as a powerful catalyst, signaling that the intersection of generative AI and established software platforms is a symbiotic relationship rather than a zero-sum game. During a CNBC appearance, Huang argued that the market "got it wrong," specifically defending the indispensable role of platforms like ServiceNow. He emphasized that these companies are uniquely positioned to deploy fine-tuned AI agents that utilize their existing specialized tools.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Sales Software company ZoomInfo (NASDAQ: GTM) jumped 3.4%. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free.
- Endpoint Security company SentinelOne (NYSE: S) jumped 4.2%. Is now the time to buy SentinelOne? Access our full analysis report here, it’s free.
- Hospitality & Restaurant Software company Toast (NYSE: TOST) jumped 3.2%. Is now the time to buy Toast? Access our full analysis report here, it’s free.
- Healthcare And Life Sciences Software company Doximity (NYSE: DOCS) jumped 3.4%. Is now the time to buy Doximity? Access our full analysis report here, it’s free.
- Spend Management Software company American Express Global Business Travel (NYSE: GBTG) jumped 4.6%. Is now the time to buy American Express Global Business Travel? Access our full analysis report here, it’s free.
Zooming In On American Express Global Business Travel (GBTG)
American Express Global Business Travel’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 4.7% on the news that the "AI replacement" narrative reached a fever pitch following the release of new models from Anthropic and OpenAI.
The simultaneous debut of Anthropic's Claude Opus 4.6 and OpenAI's "Frontier" agent platform raised concerns that autonomous agents are no longer just tools, but new operating systems that can cannibalize traditional software. This suggests that specialized applications might be reduced to mere features within frontier models, rendering legacy seat-based licensing models increasingly obsolete. The catalyst is the models' unprecedented agentic power. Opus 4.6’s "software hunting" capability allows it to autonomously audit and patch complex codebases, while OpenAI's Frontier platform bypasses traditional CRM and ticketing interfaces to perform enterprise work directly. By commoditizing sophisticated workflows into low-cost API calls, these releases threaten the recurring revenue of software giants. As AI builds bespoke tools on demand, the market is aggressively repricing the entire software application layer.
American Express Global Business Travel is down 26.7% since the beginning of the year, and at $5.51 per share, it is trading 36.1% below its 52-week high of $8.62 from February 2025. Investors who bought $1,000 worth of American Express Global Business Travel’s shares 5 years ago would now be looking at an investment worth $525.36.
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