Goldman Sachs CEO Solomon calls software rout 'too broad' as Wall Street looks to steady investor nerves

Group 1: Market Sentiment and AI Impact - Goldman Sachs CEO David Solomon described the recent sell-off in software stocks as "a little bit too broad," suggesting that the market reaction may be overblown and urging patience among investors [1][2] - Solomon indicated that there will be both winners and losers in the software industry as companies adapt to AI advancements, emphasizing that many firms will successfully pivot [2] - Smaller alternative asset managers, such as Blue Owl, experienced significant pressure on their stocks due to their exposure to software companies affected by AI developments [3] Group 2: Company Perspectives and Future Outlook - Blue Owl's CEO criticized the notion that Fortune 500 companies would completely replace their software with AI solutions, highlighting the complexity of the transition [4] - Solomon noted that while Goldman Sachs is monitoring AI-related disruptions in the software sector, the bank's exposure to this industry is "insignificant" to its overall platform [4] - Looking ahead, Solomon expressed optimism for dealmaking in 2026, particularly in mergers and acquisitions (M&A), predicting a constructive year for capital markets [5] Group 3: Investment Banking Performance - Investment banking revenue globally has increased by 10% so far this year, driven by M&A and bond underwriting activities [6] - Major deals in investment banking this year include Elon Musk's SpaceX acquiring xAI and significant bond offerings from tech giants Oracle and Alphabet, both of which are planning substantial investments in AI [6]