Goldman Sachs favors digital infrastructure and cybersecurity firms over simple software tools vulnerable to AI disruption.
Cloudflare benefits from rising AI-driven internet traffic and remains critical to global web security and infrastructure.
AppLovin’s ad network and strong data advantage help it grow even as AI changes mobile app development.
MongoDB powers AI applications by storing complex data and maintaining high customer switching costs.
The tech world is facing a big shift with artificial intelligence’s quick evolution. The fast pace is making investors worried that some software companies may become obsolete soon. This fear has caused a massive sell-off in the sector. Many tech stocks have recently lost value despite these companies’ thriving businesses.
Top experts from firms like Goldman Sachs (a multinational investment bank) and Zacks (a lending investment research firm), however, have pointed out that AI won't destroy the entire industry. Instead, it will create a clear split between ‘AI losers’ and ‘AI winners.’ So, the trick to investing now is finding companies that AI cannot easily replace. These are businesses built on deep infrastructure, vital security, or massive data networks.
Cloudflare acts as a bridge between users and the websites they visit. It provides security and speed for a huge portion of all internet traffic. Cloudflare owns and runs a physical network of servers in hundreds of cities around the world, it is very hard for a new AI tool to replace what the company does. AI can help write code, but it cannot move physical data across the globe or stop a cyberattack as effectively as Cloudflare’s global network.
In fact, the rise of AI actually helps Cloudflare. As more people use AI apps, internet traffic increases. This means more companies need Cloudflare to protect their data and keep their apps running fast. With sales expected to grow by nearly 28% this year, Cloudflare is proving that it is a foundational part of the internet that AI is more likely to power than to push aside.
AppLovin is a unique player in the mobile world. It is not just a software provider; it is a massive advertising network. It helps mobile app developers find new users and make money through ads. While some worry that AI could make creating games too easy, AppLovin’s value isn't in making the games. Its value lies in its huge pile of data and its ability to show the right ad to the right person at the right time.
AppLovin has already started using its own AI models to make its ad targeting even better. This has led to huge growth, with earnings expected to more than double this year. By owning the auction house where mobile ads are bought and sold, AppLovin stays relevant regardless of how the apps themselves are built.
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Every AI app needs a place to store and organize information. This is where MongoDB comes in. It provides a flexible database that can handle the complex, messy data that AI models thrive on. Because it is so difficult and risky for a company to move its data from one provider to another, MongoDB has very high switching costs. This keeps customers loyal and makes the business very stable.
Rather than being a victim of AI, MongoDB is a partner to it. Developers use MongoDB to build the very AI apps that people are talking about today. Recent reports show that as companies modernize their tech for the AI era, they are turning to MongoDB more than ever. With revenue growth staying strong at over 20%, it remains a mission-critical platform for the future.
Investment giant Goldman Sachs recently launched a special strategy to deal with this AI shift. It suggests going long on companies that build the plumbing of the digital economy. This includes big names like Microsoft and Oracle, who provide the massive cloud power AI needs. It also includes cybersecurity leaders like CrowdStrike and Palo Alto Networks.
On the other hand, Goldman warns about shorting companies that do simple tasks AI can now do for free, such as basic document signing or simple project tracking. The big takeaway for 2026 is clear; invest in the companies that provide the essential tools, security, and data that AI needs to function. These are the businesses that will not just survive the AI revolution but will lead it.
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Firms like Cloudflare, AppLovin, and MongoDB show that being AI-resistant does not mean avoiding AI but enabling it. As the market separates hype from durability, investors should focus on businesses with uniqueness, high switching costs, and mission-critical services. In the AI era, the safest software stocks may be the ones quietly powering the revolution behind the scenes.
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1. Which are the best AI-resistant stocks right now?
Some of the strongest AI-resistant software stocks right now include Cloudflare, AppLovin, and MongoDB. These companies are not easily replaced by AI because they provide core infrastructure, advertising networks, or data platforms. Large firms like Microsoft and Oracle are also seen as safer bets because they supply the cloud systems that AI depends on every day.
2. Should I buy AppLovin stock right now?
AppLovin has shown strong earnings growth and uses its own AI tools to improve ad targeting. Its strength comes from owning a large mobile ad network and valuable user data. However, the stock has already seen big price swings. Investors should review valuation, growth trends, and risk tolerance before buying, instead of following hype alone.
3. Is Cloudflare a good long-term investment?
Cloudflare plays a key role in internet security and performance. As AI apps grow, internet traffic increases, which may boost demand for its services. The company is expanding into developer tools and AI services as well. While growth remains strong, investors should watch profitability and competition before making long-term decisions.
4. Why are software stocks down?
Investors fear that AI can replace simple software tools, especially those that automate basic tasks like writing, coding, or document processing. If AI can offer these features cheaply or for free, companies built only around those tools may lose value. This has created a split between essential infrastructure companies and vulnerable software providers.
5. What is Goldman Sachs’ AI investment strategy?
Goldman Sachs suggests investing in companies that provide core digital infrastructure and cybersecurity services. These businesses form the foundation that AI systems run on. At the same time, Goldman warns against companies offering simple tools that AI can easily replace. The strategy focuses on owning essential platforms rather than basic software products.