Goldman Sachs: AI Stock Plunge Last Week Reflects Portfolio Rebalancing, Investment Wave Continues

According to Goldman Sachs analyst Mark Wilson, global technology stocks plunged last week as markets reassessed the true winners and losers within the AI supply chain, rather than due to Federal Reserve policy uncertainty. Microsoft fell to 52-week lows and Amazon broke below its 200-day moving average, while the "Magnificent Seven" tech stocks declined over 5% year-to-date. However, memory chip manufacturer Micron Technologies posted record-high gross margins, highlighting significant divergence within the AI supply chain. Wilson emphasized that the AI investment boom is not ending, but shifting: companies with unclear AI returns or facing margin pressure see stock declines, while suppliers benefiting from AI capital expenditures attract continued demand. Goldman Sachs' prime brokerage team also flagged elevated hedge fund leverage and concentrated AI holdings as amplifying market volatility.
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