Goldman Sachs Strategist: Semiconductor sector is highly volatile, favoring large-cap tech stocks

Odaily Planet Daily News] Goldman Sachs Group strategist Christian Mueller-Glissmann stated that as chipmaker stock prices continue to fluctuate, large-cap tech stocks may become more attractive amid the AI trading frenzy. Although the market rally has been primarily led by chipmakers and beneficiaries of AI capital expenditure, rather than hyperscale cloud service providers, Mueller-Glissmann noted that these leading stocks belong to a highly volatile segment of the AI field and have accumulated significant positions and leverage through instruments like ETFs and options. "If you believe the momentum of AI development will continue to improve, you would want to diversify into hyperscale cloud service providers and potentially reduce allocation to semiconductors. Because within the landscape of AI capital expenditure, semiconductors are truly the highly volatile component," Mueller-Glissmann, who serves as Goldman Sachs' head of asset allocation research, said in an interview. (Bloomberg)