Goldman Sachs: AI Stock Volatility Dramatic, But Positioning Far From Extreme

BlockBeats News, August 21st. Rich Privorotsky, head of HighGold OneDelta, pointed out that in the past 48 hours, there has been severe volatility in AI and momentum trading. The Goldman Sachs GSPUMOMO momentum portfolio has accumulated a nearly 7% decline. However, according to Goldman Sachs Prime data, the position changes have been much more moderate: momentum exposure is currently close to neutral, and the recent increase by investors is more in net exposure, with total leverage not showing a significant resurgence.

This is particularly important because the market experienced a significant derisking process in July. Currently, although investors still hold a considerable amount of AI and semiconductor exposure, they are far from the previous position peak. Internal leverage in semiconductors has decreased, with only a certain amount still in the system. A rapid price decline can easily trigger passive deleveraging and forced selling.

Therefore, the recent significant price fluctuations in AI stocks may be further amplified by the low liquidity bias in August. The intraday price action may seem very "fundamental," but in reality, it may not correspond to an equivalent change in fundamentals. At this stage, it is more suitable to continue observing total leverage, Prime positions, and semiconductor fund flows to determine whether this round of volatility will further evolve into a more widespread derisking. (FX678)