Goldman Sachs Backs AI SaaS Rebound and Flags 3.5% PCE Inflation
Goldman Sachs CEO David Solomon argued that the 2026 SaaS sell-off was overdone, naming Figma and Atlassian as AI-driven rebound candidates with double-digit revenue growth and discounted valuations. Separately, Chicago Fed President Austan Goolsbee warned that March PCE inflation at 3.5% and rising service-sector prices justify sustained policy caution.
1. Solomon Calls SaaS Sell-Off Overdone
Goldman Sachs CEO David Solomon stated that the recent downturn in AI-driven software stocks was excessive, pointing out that the sector’s double-digit revenue growth outlook remains intact and that valuations have become attractive after steep share-price declines.
2. Figma and Atlassian Positioned for Rebound
Solomon identified Figma and Atlassian as prime beneficiaries of renewed AI investment, emphasizing their strong adoption of machine-learning tools, disciplined spending, and potential to capture market share in collaborative software.
3. Fed’s Goolsbee Highlights 3.5% PCE Inflation
Chicago Fed President Austan Goolsbee observed that the Personal Consumption Expenditures price index rose at a 3.5% annual rate in March, with service-sector inflation broadening and oil prices exerting upward pressure on overall price levels.
4. Implications for Goldman Sachs Financials
Persistent above-target inflation and caution on rate cuts could sustain higher net interest margins for Goldman Sachs, while volatility in tech valuations may drive increased advisory and trading revenues.