High盛 Releases 7 Key Indicators to Gauge Software Sector Stability: MSFT, ORCL, CRM, NOW, SNOW, CRWV, DDOG

The software sector is navigating heightened volatility from recent earnings reports and AI-related news, with Goldman Sachs publishing seven key indicators to assess when fundamentals may stabilize. January to February 2026 saw Microsoft, ServiceNow, and OpenAI-related headlines amplify investor concerns. The report highlights two primary areas: competition from AI-native firms and the timing of capital expenditures turning into profitable revenue. Goldman Sachs notes at least two to three quarters of fundamental stability are likely needed before sentiment materially improves. Key signals include: AI spending translating to effective revenue; shift from custom builds to off-the-shelf solutions; pricing power reflecting AI cost increases; domain expertise creating moats; acceleration in M&A; reallocation of capital and talent; and clearer, less uncertain capacity rollouts. Sector views: Buy Microsoft, Oracle, Salesforce, ServiceNow, Snowflake; Neutral CoreWeave, Intuit, Workday; Sell Adobe, Databox. Goldman advises waiting for key signals to materialize before accelerating positions amid ongoing macro caution and AI disruption.