Goldman Sachs Turns Bearish On Chipmakers, Advises Hedge Through Put Options: China Remains 'A Major Risk For The Sector'
Portfolio Pulse from Piero Cingari
Goldman Sachs has turned bearish on the semiconductor sector, advising investors to hedge their exposure by purchasing put options on the VanEck Semiconductor ETF (SMH). The firm cites geopolitical risks, potential China export restrictions, and upcoming earnings as key concerns. NVIDIA (NVDA) is highlighted as a company to watch, with earnings expected in late August.
July 19, 2024 | 3:38 pm
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NEGATIVE IMPACT
NVIDIA (NVDA) is highlighted as a key company to watch, with earnings expected in late August. Goldman Sachs notes potential sales growth slowdown and net margin contraction.
NVIDIA is specifically mentioned as a company to watch, with concerns about sales growth and net margins, which could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
Goldman Sachs advises investors to hedge their exposure to the semiconductor sector by purchasing 3-month 5% out-of-the-money put options on the VanEck Semiconductor ETF (SMH).
Goldman Sachs' bearish outlook and recommendation to hedge with put options directly impacts SMH, indicating potential downside risk in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100