Goldman Sachs Identifies Three AI-Powered Software Stocks With High Upside Potential

Key Takeaways

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Goldman Sachs has initiated coverage on three software companies—Twilio, Braze, and Klaviyo—assigning Buy ratings to each.
Twilio received a $300 price target from Goldman, implying approximately 63% upside potential.
Braze was assigned a $34 price target, representing around 62% potential gain from current levels.
Klaviyo earned a $26 price target, reflecting the highest upside projection at approximately 93%.
The investment bank believes these firms are strategically positioned to capitalize on accelerating artificial intelligence adoption across enterprises.

Goldman Sachs has initiated coverage on three software stocks that analyst Callie Valenti believes are well-positioned to capitalize on the artificial intelligence revolution. The investment bank assigned Buy ratings to Twilio, Braze, and Klaviyo, each with distinct investment theses.

These three companies operate in complementary but separate segments of enterprise software. Twilio specializes in communications infrastructure. Braze provides customer engagement platforms. Klaviyo offers data intelligence and marketing automation primarily serving e-commerce businesses.

Twilio Positioned as Communications Backbone for AI

Goldman Sachs established a $300 price target for Twilio, representing potential gains of approximately 63% from present trading levels.

Twilio Inc., TWLO

Twilio operates cloud-based infrastructure enabling businesses to communicate with customers via text messaging, voice calls, and additional channels. Goldman emphasized that even as artificial intelligence agents proliferate, companies developing these systems require reliable methods to connect with end users.

The bank specifically called attention to Twilio’s Voice segment, which delivered 20% year-over-year growth during the initial quarter. The company’s self-service business expanded 28% in the fourth quarter of 2025. Goldman also observed that as of September 2024, half of the Forbes AI 50 startups maintained Twilio as a customer.

Twilio’s first-quarter 2026 earnings showed record expansion alongside improved profit margins. Company leadership characterized the business as transforming into an infrastructure designed specifically for AI-powered communications.

Braze and Klaviyo Complete the Trio

Braze earned a $34 price target from Goldman, suggesting approximately 62% appreciation potential. The firm believes Braze is capturing market share from legacy marketing platforms as organizations modernize their technology stacks.

Goldman projects Braze will achieve 20% operating margins by 2029. The bank attributes this margin expansion forecast to enhanced pricing flexibility and an expanding product portfolio.

Braze’s recent quarterly performance exceeded revenue estimates. Following its fourth consecutive quarter of accelerating top-line growth, the company elevated its full-year outlook.

Klaviyo received the most aggressive price target among the three, with Goldman’s $26 target implying roughly 93% upside. The shares have declined approximately 30% since first-quarter earnings, pressured by the chief financial officer’s departure announcement and mixed quarterly metrics.

Goldman contends these near-term headwinds don’t accurately reflect Klaviyo’s fundamental business health. The firm highlighted that Klaviyo’s revenue continues expanding at rates in the high-20% range.

The bank views Klaviyo’s deep integration with Shopify as a competitive advantage rather than merely a concentration risk. Goldman anticipates Klaviyo will sustain momentum within the Shopify ecosystem while simultaneously penetrating enterprise accounts and geographic markets beyond North America.

Klaviyo’s first-quarter 2026 performance surpassed Wall Street consensus expectations for both revenue and profitability. Management subsequently increased forward guidance based on these results.

Goldman advised investors to monitor the sustainability of AI-related demand for each platform as a critical variable going forward. The firm also identified gross profit growth rates and margin trajectory as important metrics to track in subsequent reporting periods.

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