As Wall Street continues to assess the fallout from a sharp sell-off in technology stocks after the launch of Anthropic’s new AI tool, some of the world’s big analysts and tech CEOs offer a different view. A top JPMorgan strategist says that investors shouldn’t be worried, while tech leaders like Nvidia’s Jensen Huang and Google’s Sundar Pichai have called the panic “illogical” and “overblown”. Market commentator and CNBC host Jim Cramer shared a post on X (formerly Twitter), writing “Software decline seems overdone to me at this time….”. Speaking at CNBC’s “Mad Money”, Cramer said that the Wall Street has decided that “everything software must be thrown away, anything remotely connected to software is suspect, including companies that just collect data”. “But any client — a bank, a consumer-packaged goods company, an industrial company — is golden, at least for now,” he added.

Stephen Parker, the co-head of global investment strategy at America’s biggest bank JPMorgan said that the panic is overblown. As reported by Business Insider, he sees the stock rout “as a healthy rotation as investors pivot towards better opportunities and away from the tech-driven market.”Another JPMorgan analyst Toby Ogg shared a note to investors saying “We are now in an environment where the sector isn’t just guilty until proven innocent but is now being sentenced before trial.”For software companies, “better-than-expected results are no longer enough to convince the market,” Ogg wrote. That’s unless “they can demonstrate irrefutably that AI is a sustainable tailwind to growth rather than a longer-term headwind,” he said.

Google CEO Sundar Pichai on software stock rout

During the company’s earnings call, Google CEO Sundar Pichai said that the sell off might be overblown.“I think it is an enabling tool, just like it has been an enabling tool for us across our products and services, be it Search, YouTube, etc,” Pichai said of its AI tool Gemini, saying that companies that are “seizing the moment” will “have the same opportunity ahead.”

Nvidia CEO Jensen Huang on IT stock sell off

Speaking recently at an event, Nvidia CEO Jensen Huang said “There’s this notion that the tool ‌in the ‍software industry is in decline, and will be ‍replaced by AI … It is the most illogical ‌thing in the world, and time will prove itself.” “If you were a human or robot, artificial, general robotics, would you use tools or reinvent tools? The answer, obviously, is to use tools … That’s why the latest breakthroughs in AI are about tool use, because the tools ‍are designed to be explicit,” Huang said.Huang argued that AI will continue to rely on existing software rather than rebuild basic tools from scratch, pushing back against investor fears of AI-driven disruption in the data and professional services industry.