What Happened?
Shares of e-commerce platform Shopify (NYSE: SHOP) jumped 3.4% in the morning 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.
After the initial pop the shares cooled down to $124.19, up 3.2% from previous close.
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What Is The Market Telling Us
Shopify’s shares are extremely volatile and have had 36 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 8 days ago when the stock gained 8.5% on the news that its positive momentum continued as an analyst at Truist Securities upgraded the stock from Hold to Buy and raised the price target. The price target was boosted from $110 to $150. This positive analyst action appeared to help sentiment improve following recent volatility after the company's earnings report. Investors seemed to refocus on Shopify’s strong revenue growth outlook and an announced share repurchase authorization. Adding to the optimistic outlook, the company was also noted as being well-positioned to be one of the biggest winners from developments in artificial intelligence.
Shopify is down 21% since the beginning of the year, and at $124.19 per share, it is trading 30.6% below its 52-week high of $179.01 from October 2025. Investors who bought $1,000 worth of Shopify’s shares 5 years ago would now be looking at an investment worth $969.48.
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