Home topics news via pexels News News Goldman Sachs AI software stocks 2026: which companies made the buy list and which made the sell list Yajush Gupta February 19, 2026 Software valuations just hit their lowest level since 2014. Dynamic Business unpacks the Goldman Sachs analysis that shows which companies survive and which ones don’t. What’s happening: Goldman Sachs has launched a “pairs trade” framework splitting software stocks into two camps: those that will thrive in an AI-driven world, and those it believes face serious disruption. Why this matters: For SME owners who rely on software tools or hold technology investments, the framework offers a practical lens for assessing which platforms are genuinely built for the AI era and which may be quietly losing ground, regardless of how confidently they market themselves. Something significant shifted in global technology markets at the start of 2026. Software stocks, which had spent years trading at premium valuations on the promise of predictable, recurring revenues, ran headlong into a question investors could no longer ignore: what happens to subscription software when artificial intelligence can do the same job for less? The answer, so far, has been a sell-off. According to Goldman Sachs research , the forward price-to-earnings multiple for software has dropped from roughly 35 times earnings in late 2025 to 20 times, its lowest level since 2014 and the smallest premium relative to the broader S&P 500 since 2010. Put simply, investors are paying far less for each dollar of software company profit