During a UBS financial services conference in Key Biscayne, Florida, Goldman Sachs’ chief executive David Solomon brushed off last week’s sharp decline in software stocks, calling the narrative “a little bit too broad.” He emphasized that the market will inevitably see winners and losers, and that many companies will pivot and survive the current turbulence.
Solomon added that while the bank keeps a close eye on AI‑driven disruptions to software businesses, its overall exposure to the sector is insignificant. “We’re monitoring the changes,” he said, “but it’s a small part of our platform.”
Looking ahead, Solomon remains bullish on 2026, especially for dealmaking and capital markets. “We anticipate a constructive year for M&A and for capital markets,” he told the audience, underscoring confidence in continued transaction activity.
Goldman’s performance in 2025 was among the strongest in its history for core dealmaking and trading. Entering 2026, the firm carried high expectations, buoyed by a 10% year‑to‑date rise in worldwide investment banking revenue, driven largely by M&A and bond underwriting volumes.
Some of the biggest deals to date include SpaceX’s acquisition of xAI and significant bond issuances by major tech players such as Oracle and Alphabet, both poised to invest heavily amid the AI boom.
The software sell‑off has also weighed on alternative investment firms. Companies like Apollo Global Management, Ares Management, Blackstone, and KKR saw their shares pressure due to exposure to software businesses facing AI challenges. Even smaller players, such as Blue Owl, voiced concerns during earnings calls, highlighting the broader market unease.
As investor nerves fray over AI’s growing influence, leaders across Wall Street are calling for patience and a measured approach. Solomon’s remarks reflect a broader sentiment that, while the current volatility is notable, it is not the end of the road for software innovation.
