Goldman Sachs Identifies Top AI Sector Picks for 2026

Market Outlook for AI in 2026

Goldman Sachs has forecasted a significant transformation in the artificial intelligence (AI) sector by 2026. Following a year of profound technological shifts in 2025, Marco Argenti, the Chief Information Officer at Goldman Sachs, anticipates that AI will evolve beyond mere chatbots to become the foundational structure of modern economic systems. Argenti remarked, "In my 40 years in the tech industry, 2025 brought the most significant changes I've witnessed, and 2026 promises even greater transformation." Goldman Sachs Research underscores AI as a key growth driver in financial markets, with over 30% of the market capitalization of the S&P 500 linked to major tech companies. The firm expects hyperscalers to invest more than $500 billion in AI infrastructure by 2026, highlighting the sectors expanding influence.

Key Trends and Industry Shifts

Argenti identifies several emerging trends set to define the AI landscape. AI models are anticipated to function as operating systems that autonomously access tools and perform tasks, marking a departure from traditional software. Developers are expected to focus more on context and memory to deliver personalized results. This shift will also lead to the rise of personal AI agents capable of automating daily tasks like travel bookings and scheduling. Goldman Sachs predicts the emergence of a "agents-as-a-service" economy, where companies blend human expertise with AI agents, charging based on data usage rather than time spent. The approach will demand adaptability from workers as job roles evolve with AI support. Additionally, the bank foresees significant alliances among tech companies, infrastructure providers, and energy suppliers, potentially forming duopoly or oligopoly market structures. Energy access will be crucial, with data center power consumption expected to rise by 175% by 2030, making energy scarcity a potential constraint by 2026.

Companies Poised to Benefit

According to Goldman Sachs, the AI boom in 2026 will benefit firms that leverage AI to enhance productivity rather than traditional chipmakers. After a stellar 2025 with companies like NVIDIA leading the way, the bank predicts a broader adoption of AI technologies across industries, possibly causing shifts within major U.S. tech stocks. Goldman Sachs examined companies in the Russell 1000 Index, focusing on those emphasizing AI for efficiency and productivity in their reports. Among the potential beneficiaries are Bank of America, Evercore, H&R Block, Affirm Holdings, Labcorp Holdings, Willis Towers Watson, EPAM Systems, Booz Allen Hamilton, Zillow Group, and Pegasystems. These companies have high levels of automatable processes, potentially leading to significant cost reductions and margin improvements over time.

Spotlight on Affirm and EPAM Systems

EPAM Systems, a global provider of software engineering services, stands out due to its strategic focus on AI-native technologies. The company has raised its revenue and profit forecasts, emphasizing its transformation through AI investments, which has positively impacted its stock performance. Analysts generally maintain a favorable view of EPAM, with a moderate buy recommendation and a projected price target 8.97% above its current level. Affirm, a U.S. payment services provider, has also embraced AI, particularly in sales and consumer services. Its AdaptAI platform, launched in mid-2025, offers merchants personalized payment options, enhancing conversion rates and customer retention. Despite recent pressures from potential regulatory caps on interest rates, Affirm's stock has shown strong gains over the year, with analysts remaining optimistic about its future. Traditional service providers and financial institutions like Labcorp, H&R Block, and Bank of America are also expected to benefit from efficiency gains through automation, potentially enhancing their profitability. Overall, Goldman Sachs' analysis indicates that as AI becomes integral to business operations, companies that effectively harness its potential will be well-positioned for growth in 2026 and beyond.