The Chief Executive Officer of Goldman Sachs Group stated that the sharp decline in software stocks last week, driven by concerns over artificial intelligence competition, likely represents an overreaction by the market.

Speaking on Tuesday at a UBS Group conference in Key Biscayne, Florida, the CEO remarked, "I think the market narrative over the past week has been somewhat too broad. There will be winners and losers, and many companies will undergo transformation."

Recent declines in many software stocks followed the release of new AI automation tools by Anthropic and their potential impact on traditional Software-as-a-Service (SaaS) businesses. Selling pressure affected companies regardless of whether they had previously established partnerships with AI firms or possessed proprietary data stacks.

During the wide-ranging interview, the CEO expressed that the US economy is expected to experience strong growth this year, noting that "the macroeconomic environment is generally very positive."

The Wall Street executive indicated that several factors could continue to drive economic growth, including substantial fiscal stimulus, regulatory easing, and potential "pro-populace" actions by the Trump administration ahead of the midterm elections. However, the CEO also cautioned that trade, inflation, and geopolitical issues are likely to remain persistent concerns for investors.