Goldman Sachs: AI trading momentum is fading, and the semiconductor and AI composite sector is shifting from long to short, recommending a pivot to European and Japanese bank stocks, gold, and copper mining stocks, among other hard assets.
Goldman Sachs senior trader Natasha Tiwana noted in her latest report that the momentum structure of the AI theme has undergone a fundamental shift, with the semiconductor and AI composite sector in the momentum factor transitioning from long to short, and the software sector taking its place as the largest weight in short-term momentum. Goldman Sachs advises investors to turn their attention to previously overlooked areas, including European and Japanese bank stocks, hard asset exposures such as gold miners and copper stocks, and hedging strategies related to French political risk. The report mentioned that in August 2026, the market experienced a sharp deleveraging event, with the Goldman Sachs high-beta momentum portfolio falling 12% in a single week, and the AI long-short hedging portfolio dropping 10% over five days.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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