Goldman Sachs Says the Artificial Intelligence (AI) Software Sell-Off Was Overdone. Here Are the Best Growth Stocks to Buy Now.

Goldman Sachs argues the 2026 SaaS sell-off was overdone, highlighting Figma and Atlassian as rebound candidates. Figma reported 2025 sales of $1.1 billion, up 41% year over year, and expects $1.4 billion in 2026, while Atlassian posted Q3 FY2026 revenue of $1.8 billion, up 32%, with AI credit usage at Rovo growing 20% month over month. Both stocks have already been hit hard this year, but strong AI adoption and double-digit growth support a more constructive view.

Analysis

The key market error is treating AI as a flat demand substitute for software seats, when in practice it is more likely to become an attach-rate expansion and workflow intensification story. For both FIG and TEAM, AI monetization can offset any seat compression because the new credit-based layer introduces a usage-linked revenue stream that is earlier in the adoption curve than core subscription churn. That means the near-term P&L sensitivity is less about displacement and more about whether AI features raise engagement enough to increase expansion revenue and retention.

The second-order winner is the platform layer around these tools: implementation partners, systems integrators, and adjacent workflow software should see higher project intensity as customers re-architect internal processes to absorb AI. The likely loser is lower-end point design or task automation vendors that lack distribution; once incumbents bundle AI into existing workflows, standalone offerings face pricing pressure and longer sales cycles. Goldman’s stance matters because it can catalyze a multiple reset in software broadly, but the dispersion should widen materially between incumbents with embedded distribution and “AI-native” names still proving monetization.

The contrarian risk is that the rebound becomes a valuation trap if AI usage grows but credit monetization remains too small relative to the base business. Over the next 1-2 quarters, the market will likely reward proof points in AI consumption and net retention more than headline revenue growth; if usage ramps but conversion is weak, the rally stalls. For TEAM specifically, the balance sheet and deferred revenue cushion reduce downside, but profitability remains a timing variable, so the stock is still vulnerable if the market rotates back to cash-flow quality.

Bottom line: this is not a broad software beta trade; it is a selective re-rating trade on companies that can use AI to deepen, not dilute, customer lock-in. The setup favors names where usage-based AI revenue can surprise to the upside faster than consensus can update models, creating room for multiple expansion over the next 6-12 months.

Key Decisions for Investors

• Go long FIG for a 3-6 month tactical rebound; thesis is AI credit monetization and a post-selloff multiple reset. Risk/reward improves if the market continues to price it as a pure subscription name rather than a usage-led platform.
• Go long TEAM on a 6-12 month horizon; use weakness to build, since seat expansion plus Rovo adoption creates a second revenue leg. Stop-loss if next quarter shows slowing user expansion or AI credit growth decelerates materially.
• Pair trade: long FIG / short a basket of small-cap SaaS names with no clear AI attach-rate. The trade benefits from dispersion as investors distinguish monetizing incumbents from vulnerable software vendors.
• Buy TEAM calls 3-4 months out on post-earnings pullbacks; the asymmetry is driven by sentiment repair after a large multiple compression. Avoid chasing after sharp one-day rallies unless implied volatility resets lower.
• Reduce exposure to generic SaaS beta if already overweight; rotate capital into software names with measurable AI usage metrics and strong balance sheets, because this is a stock-selection market, not a sector-wide recovery.