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:
- Healthcare And Life Sciences Software company Veeva Systems (NYSE: VEEV) jumped 3.5%. Is now the time to buy Veeva Systems? Access our full analysis report here, it’s free.
- Lending Software company Upstart (NASDAQ: UPST) jumped 3.9%. Is now the time to buy Upstart? Access our full analysis report here, it’s free.
- HR Software company Paycom (NYSE: PAYC) jumped 4.3%. Is now the time to buy Paycom? Access our full analysis report here, it’s free.
- Data Storage company Commvault (NASDAQ: CVLT) jumped 3.1%. Is now the time to buy Commvault? Access our full analysis report here, it’s free.
- Hospitality & Restaurant Software company Agilysys (NASDAQ: AGYS) jumped 3.8%. Is now the time to buy Agilysys? Access our full analysis report here, it’s free.
Zooming In On Paycom (PAYC)
Paycom’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 2.9% on the news that investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off. The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.
Paycom is down 15% since the beginning of the year, and at $129.61 per share, it is trading 51.2% below its 52-week high of $265.71 from June 2025. Investors who bought $1,000 worth of Paycom’s shares 5 years ago would now be looking at an investment worth $346.34.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
