Goldman Sachs flags a shift in fund positioning toward chips and away from software
Goldman Sachs said institutional funds have been rotating out of software stocks and into semiconductors. The bank's data point to artificial-intelligence demand fuelling appetite for chipmakers. The sector rotation signals where investors are shifting their growth bets.
Drawing on prime-brokerage data, Goldman Sachs said hedge funds and other institutional investors had recently trimmed positions in software stocks and added exposure to semiconductor makers. The bank said the move reflects expectations that spending on artificial-intelligence infrastructure will keep chip demand elevated.
The note suggests that caution over software companies' valuations and revenue growth is steering investors toward more direct AI-hardware themes. Semiconductor shares have been a standout area of gains in recent months, driven by data-centre investment and demand for advanced chips.
Analysts caution that sector rotations can reverse quickly and that one bank's positioning data does not capture the whole market. Even so, Goldman's note offers a current snapshot of where investors are concentrating along the AI earnings chain. This material is for information only and is not investment advice.
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