Goldman Sachs: AI deal recreates July-style deleveraging, storage and data center segments are the most attractive

Comparing the news, Goldman Sachs believes that this week's market trend is a typical deleveraging market, similar to the underlying logic of the July sell-off. Goldman Sachs's high beta momentum portfolio fell 12% this week, and the AI hedging portfolio fell 10% on the 5th. Although leverage levels in the AI sector have fallen from extremely high levels, inertial funds are still driving rapid and indiscriminate bargain purchases.

Goldman Sachs said that AI trading is not over, but the stage of relying on the overall rise in the sector to obtain excess income is changing. Currently, the focus should be on finding opportunities for a clear divergence between stock prices and earnings per share. Among them, the storage and data center sector has the most prominent valuation gap, and profit recovery has not been fully reflected in stock prices, so it is the most tactically attractive. Nvidia's second quarter earnings report and September industry conference will be the next catalyst.

At the same time, the momentum factor is being readjusted. Software has replaced semiconductors as the maximum weight for the three-month momentum multi-head combination, while semiconductor/AI complexes have entered the short mix. Goldman Sachs said that capital is still shifting to areas previously overlooked, such as the Bank of Europe and Japan, gold miners, and copper stocks.