Goldman Sachs believes the recent sell-off in AI software stocks was overdone, with companies like Figma and Atlassian well-positioned to rebound. Figma's sales soared 41% year over year to $1.1 billion in 2025, with expectations to reach $1.4 billion in 2026. Both companies are seeing strong adoption of their AI products and double-digit year-over-year sales growth.
The AI trade has been a major driver of the stock market's recent gains, with companies like Alphabet Inc. and Microsoft Corp. leading the way. However, investors are starting to differentiate between the winners and losers in the AI trade, with some companies like Amazon.com Inc. and Facebook Inc. still heavily reliant on traditional advertising models.
Nebius Group is poised for a breakout, driven by booming AI infrastructure demand, securing major deals with Meta and Nvidia amid hyperscaler capacity constraints. Xerox Holdings Corporation is using AI-powered IT services to redefine its post-hardware future, building on ServiceNow. Salesforce is reshaping how it reports revenue by splitting results into Agentforce Apps and Data 360, Platform & Other as it leans into AI agents, data connectivity, and its expanding Google Cloud partnership.
Key Takeaways
['Goldman Sachs believes the recent sell-off in AI software stocks was overdone.', "Figma's sales soared 41% year over year to $1.1 billion in 2025.", "Figma and Atlassian are well-positioned to rebound from this year's sell-off.", 'Alphabet Inc. and Microsoft Corp. are leading the way in AI.', 'Nebius Group benefits from surging AI infrastructure demand, securing major deals with Meta and Nvidia.', 'Xerox Holdings Corporation is using AI-powered IT services to redefine its post-hardware future.', 'Salesforce is reshaping how it reports revenue, leaning into AI agents, data connectivity, and its expanding Google Cloud partnership.', "The AI trade has been a major driver of the stock market's recent gains.", 'Investors are getting more granular, differentiating between winners and losers in the AI trade.', 'Chinese stocks are about to get a big AI boost, with over $1 billion poised to flow into the underperforming Hang Seng Tech Index.']Goldman Sachs sees AI software sell-off as overdone
Goldman Sachs believes the recent sell-off in AI software stocks was overdone. The firm thinks Figma and Atlassian are well-positioned to rebound. Both companies are seeing strong adoption of their AI products and double-digit year-over-year sales growth. Figma's sales soared 41% year over year to $1.1 billion in 2025. The company expects sales to continue expanding in 2026, forecasting $1.4 billion for this year.
Figma and Atlassian poised for rebound
Figma and Atlassian saw their stock prices tumble over 50% and nearly 60% respectively in 2026. However, Goldman Sachs believes these companies are poised to rebound. Figma's AI tools are seeing strong adoption, and the company is integrating AI capabilities into its design tools. Atlassian's results for its fiscal third quarter 2026 revealed customers expanded the number of users accessing the company's apps.
AI software sell-off creates buying opportunity
The sell-off in AI software stocks has created a buying opportunity. Goldman Sachs believes the reaction to AI was overboard and that there will be winners and losers. Figma and Atlassian are two software stocks well-positioned to rebound from this year's sell-off. Both companies are seeing strong adoption of their AI products.
Big Tech earnings show AI trade split
The world's biggest technology companies posted strong earnings last week, showing that the artificial intelligence boom is alive and well. However, investors are getting more granular as they try to divvy up the winners and losers in the AI trade. Companies like Alphabet Inc. and Microsoft Corp. are leading the way in AI, while others like Amazon.com Inc. and Facebook Inc. are still heavily reliant on traditional advertising models.
Big Tech earnings drive stock market gains
The world's biggest technology companies posted strong earnings last week, driving stock market gains. The AI trade has been a major driver of the stock market's recent gains, with companies like Alphabet Inc. and Microsoft Corp. leading the way. However, investors are starting to differentiate between the winners and losers in the AI trade.
Nebius poised for breakout
Nebius Group (NBIS) is poised for a breakout, driven by booming AI infrastructure demand. The company benefits from surging AI infrastructure demand, securing major deals with Meta and Nvidia amid hyperscaler capacity constraints. Nebius's $643M Eigen AI acquisition strategically positions it to lead in open-source AI.
Xerox uses AI-powered IT services
Xerox Holdings Corporation is using AI-powered IT services to redefine its post-hardware future. The company introduced its AI-powered IT as a Service platform built on ServiceNow, underscoring its shift from traditional hardware toward a services-led, AI-enabled operating model.
Salesforce valuation reset
Salesforce (CRM) is reshaping how it reports revenue by splitting results into Agentforce Apps and Data 360, Platform & Other as it leans into AI agents, data connectivity, and its expanding Google Cloud partnership. Despite the renewed focus on AI agents and partnerships, the share price return over the past year has been weak.
Top AI stocks to consider
SoundHound AI, Tempus AI, Hut 8, InterDigital, and BigBear.ai are the five Artificial Intelligence stocks to watch today. These stocks have been identified as having significant growth potential and are worth considering for investors looking to get in on the ground floor of this emerging technology.
Del Sol Lions Club presentation
The Del Sol Lions Club is hosting a presentation on artificial intelligence fraud aimed at seniors. The speaker, Lisa Carroll, has worked in the accounting field for 30 years and is a certified fraud examiner and certified bookkeeper.
Prediction: Top AI semiconductor stock
The top-performing AI semiconductor stock over the next year is likely to be one of the following: Advanced Micro Devices (AMD), Marvell Technology (MRVL), or Xilinx (XLNX). These companies are well-positioned to benefit from the growing demand for AI chips.
Chinese stocks to get AI boost
Chinese stocks are about to get a big AI boost, Morgan Stanley predicts. More than $1 billion is poised to flow into the underperforming Hang Seng Tech Index, thanks to the upcoming inclusion of two Chinese artificial intelligence companies.
Sources
- Goldman Sachs Says the Artificial Intelligence (AI) Software Sell-Off Was Overdone. Here Are the Best Growth Stocks to Buy Now.
- Goldman Sachs Says the Artificial Intelligence (AI) Software Sell-Off Was Overdone. Here Are the Best Growth Stocks to Buy Now.
- Goldman Sachs Says the Artificial Intelligence (AI) Software Sell-Off Was Overdone. Here Are the Best Growth Stocks to Buy Now.
- Big Tech Earnings Show Split Between AI Trade Winners and Losers
- Big Tech Earnings Show Split Between AI Trade Winners and Losers
- Nebius: Very Close To Breaking Out And Silencing The AI Bears
- Is Xerox (XRX) Using AI-Powered IT Services to Redefine Its Post-Hardware Future?
- Salesforce (CRM) Valuation Reset As New AI‑Aligned Revenue Reporting Draws Investor Attention
- Best Artificial Intelligence Stocks To Consider
- Del Sol Lions Club invites public to presentation on artificial intelligence fraud aimed at seniors
- Prediction: This Will Be the Top-Performing Artificial Intelligence (AI) Semiconductor Stock Over the Next Year. (Hint: It's Not Nvidia, Broadcom, or Micron.)
- Chinese stocks are about to get a big AI boost, Morgan Stanley predicts
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