Live Markets: The AI versus software debate is "flawed" and "illogical," says HSBC

Zoom Communications

10/02/2026 14:21

US equity index futures edge green

Dec Retail Sales MM < est; Ex-Autos MM < est

Euro STOXX 600 index edges up

Dollar down; bitcoin down >1%; gold, crude up slightly

US 10-Year Treasury yield falls to ~4.15%

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

THE AI VERSUS SOFTWARE DEBATE IS "FLAWED" AND "ILLOGICAL," SAYS HSBC

Despite persistent headlines predicting that artificial intelligence will disrupt the enterprise software sector, brokerage firm HSBC sees the AI replacing software narrative as 'flawed' and 'illogical' - a view aligning with Nvidia's NVDA.O CEO Jensen Huang.

AI's usefulness in the enterprise is limited without software, and the most effective solutions come from collaboration between AI and established platforms, HSBC says.

"AI and software need to work together and leverage each other's strengths," the British brokerage said.

According to HSBC, it is neither practical nor economically sound for companies to rely on AI to write their own applications.

Software vendors are best positioned to harness AI because they possess domain expertise, robust sales channels, trusted relationships, and large teams of developers who are now more productive with new AI tools.

HSBC maintained its 'buy' rating on Oracle ORCL.N, Microsoft MSFT.O, Amazon.com AMZN.O, Salesforce CRM.N, Intuit INTU.O, Meta META.O, HP HPQ.N, TE Connectivity TEL.N, Zoom ZM.O, and Palantir PLTR.O.

The brokerage believes enterprise software vendors will thrive as AI becomes an integral part of their offerings, rather than a replacement.

(Akriti Shah)

     *****

EARLIER ON LIVE MARKETS:

IN THE WAKE OF THE TECH WRECK, NASDAQ COMPOSITE TRIES TO RIGHT THE SHIP CLICK HERE

BOFA FLAGS ASSETS SHOWING "BUBBLE-LIKE" PRICE ACTION CLICK HERE

A SOFTWARE 'SHOPPING LIST' FOR PATIENT INVESTORS CLICK HERE

KERING SHINES, INSURANCE DRAGS, CHEMICALS BOUNCE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES STEADY, EARNINGS DOMINATE CLICK HERE

TRUMP ADMINISTRATION PREPARES TO GUT CLIMATE LAWS CLICK HERE

( )