Goldman Sachs Names Top Software Stock Picks For AI Era

TLDR

• Goldman Sachs started coverage on Twilio, Braze, and Klaviyo, giving all three Buy ratings.
• Twilio got a $300 price target, which Goldman says could mean about 63% upside.
• Braze received a $34 price target, suggesting around 62% potential upside.
• Klaviyo was given a $26 price target, the largest gap at roughly 93% potential upside.
• Goldman says all three companies are positioned to benefit as more businesses adopt artificial intelligence tools.

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Goldman Sachs has started covering three software companies it believes are set up well for the artificial intelligence era. The firm gave Buy ratings to Twilio, Braze, and Klaviyo. Goldman analyst Callie Valenti laid out separate reasons for each pick.

All three companies work in different corners of business software. Twilio focuses on communication tools. Braze handles marketing campaigns. Klaviyo manages customer data and marketing for online sellers.

Twilio Leads The Pack

Goldman gave Twilio a $300 price target. That number implies upside of about 63% from current levels.

Twilio Inc., TWLO

Twilio builds cloud software that helps companies talk to their customers through text, voice, and other channels. Goldman pointed out that even as AI agents become more common, the companies building those agents still need ways to reach people.

The firm highlighted Twilio’s Voice division, which grew 20% year over year in the first quarter. Its self-service business grew 28% in the fourth quarter of 2025. Goldman also noted that half of the Forbes AI 50 startups were Twilio customers as of September 2024.

Twilio reported record growth and wider margins in its first-quarter 2026 results. The company described itself as evolving into a platform built for AI-driven conversations.

Braze And Klaviyo Round Out The List

Braze received a $34 price target from Goldman, implying about 62% upside. The firm said Braze is taking market share away from older marketing software as companies look to upgrade their technology.

Goldman expects Braze to reach 20% operating margins by 2029. The firm pointed to more flexible pricing and a wider range of products as reasons for that improvement.

Braze also posted quarterly results that beat revenue expectations. The company raised its full-year guidance after this was its fourth straight quarter of accelerating growth.

Klaviyo got the highest potential upside of the three, with a $26 price target representing about 93% upside. The stock has dropped roughly 30% since its first-quarter earnings, following news of its chief financial officer departing and uneven quarterly results.

Goldman said those issues do not reflect the underlying strength of the business. The firm noted Klaviyo’s revenue is still growing in the high 20% range.

Goldman pointed to Klaviyo’s close relationship with Shopify as a strength rather than just a risk. The firm expects Klaviyo to keep growing within that ecosystem while expanding into larger businesses and international markets.

Klaviyo’s first-quarter 2026 results topped analyst forecasts for both revenue and earnings. The company raised its guidance for the next period as a result.

Goldman said investors should watch how durable AI demand proves to be for each company going forward. The firm also flagged gross profit growth and margin trends as things to track in coming quarters.

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