Goldman Sachs flags two software stocks it says could climb at least 60%

AI has become the dominant theme in technology markets, and software has been one of the areas where investors have increasingly looked for earnings growth. In a market note highlighted by Yahoo Finance on June 28, Goldman Sachs said two software stocks it covers could surge by at least 60% from current levels, according to the report.

The Yahoo Finance write-up framed the broader backdrop as an ongoing shift in the software industry, where artificial intelligence is both a focus of corporate spending and a driver of performance. It also suggested that AI has helped lift earnings growth over the past few years, even as competition and product cycles intensify across the sector.

Goldman’s message, as characterized by the Yahoo Finance post, was essentially a valuation-and-outlook argument. The firm’s note implied that the market has not fully priced in the longer-term impact of AI on software adoption, monetization, and revenue durability, creating room for upside if execution continues.

While the report points to a large potential move for each of the two named stocks, the precise catalysts and near-term metrics were not included in the material available for this review. That includes whether Goldman’s case leaned more on accelerating revenue, margin expansion, backlog growth, or operating leverage, as well as what specific valuation benchmarks the firm used to reach its at-least-60% target range.

The episode fits a familiar pattern in software coverage during AI-driven cycles: when investor sentiment and corporate demand align, sell-side models can re-rate companies quickly. In that context, “upside” is typically shorthand for the difference between a stock’s current price and a broker’s internal view of what it could be worth under particular assumptions, such as customer spend trends, competitive positioning, and the pace of AI-related product deployment.

Sector context also matters. Software companies are often valued on expectations for recurring revenue, retention, and scalability. AI can influence each of those factors through higher seat growth, improved upsell dynamics, or the introduction of higher-priced tiers tied to AI features, but those effects are uneven across business models, from enterprise platforms to developer tools and security software.

For investors and market watchers, the key takeaway from the June 28 Yahoo Finance highlight is that Goldman is actively looking for upside among software names it believes are positioned for AI demand. What remains unclear from the limited excerpt reviewed here is the identity of the two stocks, the base-case assumptions in the targets, and whether the firm’s call depends on particular results coming from upcoming earnings reports.

The next thing to watch is whether the two companies reinforce the assumptions behind the bullish view. If their quarterly disclosures show sustained AI-related growth, improving profitability, and strong guidance, it would support the general direction of Goldman’s argument; if not, the market could treat the call as more speculative. The magnitude of the claimed upside also raises the importance of monitoring any risk factors the firm identified, including competition, implementation friction, or customer budget constraints.