Goldman Sachs says semiconductor rebound may continue as money rotates back into memory and equipment names
Goldman Sachs’ trading desk said in a July 23 market note that the recent rebound in semiconductor stocks may still have room to run. The bank said hedge funds have unwound roughly 80% of their year-to-date cumulative net buying in global semiconductor and semiconductor equipment shares since mid-June, easing what had been a crowded positioning setup. In the last one to two days, however, buyers started to return. According to the note, the clearest buying has shown up in the areas that were hit hardest during the pullback: memory and semiconductor equipment. Goldman flagged memory names including STX, WDC, MU, and SNDK, as well as equipment stocks such as AMAT, ASML, and LRCX. The desk said that move lined up with recent market action, with memory shares including Micron, SanDisk, and Seagate rebounding sharply at one point and the PHLX Semiconductor Index also posting a strong recovery. Goldman added that positioning remains elevated even after the pullback from June highs. It said the next leg for the group will likely depend on whether major cloud companies keep lifting AI capital expenditure plans, whether memory pricing and orders support earnings expectations, and whether equipment orders confirm that AI data center expansion is still moving ahead.








