Goldman Sachs: Chip stocks are a buy after the pullback, but “buying the whole basket” is no longer advisable
BlockBeats news, on July 7, Goldman Sachs stated in its latest report that after the correction in semiconductor stocks, there are still investment opportunities, but AI chip trading has entered a more selective stage, and investors should no longer simply buy the entire sector.
The firm pointed out that the PHLX Semiconductor Index has risen by more than 80% so far this year, significantly outperforming the S&P 500 and Nasdaq indexes. The strong performance has raised the threshold for subsequent earnings delivery, making the risk-reward profile before the second quarter earnings season more divergent.
Goldman Sachs still favors certain segments, including CPUs, ASICs, memory, and semiconductor equipment. Goldman Sachs believes these areas benefit more directly from the expansion of AI infrastructure and that demand visibility is relatively higher.
In terms of individual stocks, Goldman Sachs named AMD and Applied Materials. AMD benefits from server CPU and AI-related demand, while Applied Materials benefits from advanced process technology and memory capital expenditures. However, Goldman Sachs is more cautious about the mobile supply chain and some semiconductor companies with higher valuations or weaker demand.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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