Goldman Sachs: Chip Dip Buyable, But No Longer a 'Basket Buy'

BlockBeats News, July 7th. Goldman Sachs stated in its latest report that there is still investment opportunity in semiconductor stocks after the pullback, but AI chip transactions have entered a more selective stage, and investors should no longer simply buy the entire sector.

The bank pointed out that the PHLX Semiconductor Index has risen by more than 80% so far this year, significantly outperforming the S&P 500 and the Nasdaq Index. The strong performance has raised the bar for subsequent performance realization and has made the risk-return profile more differentiated ahead of the second-quarter earnings season.

Goldman Sachs still favors certain specific directions, including CPUs, ASICs, memory, and semiconductor equipment. Goldman Sachs believes that these areas directly benefit more from the expansion of AI infrastructure, and the demand visibility is relatively higher.

On individual stocks, Goldman Sachs mentioned AMD and Applied Materials. AMD benefits from server CPUs and AI-related demand, while Applied Materials benefits from advanced processes and memory capital expenditures. However, Goldman Sachs is more cautious about mobile chains, some companies with high valuations, or weak demand in the semiconductor industry.