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Goldman warns AI‑heavy chips are volatile, S&P fell 1.6% and Nasdaq 2.9% last week; recommends consumer‑experience and discount “compounder” stocks as
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Goldman Sachs flagged a 1.6% drop in the S&P 500 and a 2.9% slide in the Nasdaq Composite last week as AI‑focused chips surged 150% year‑to‑date, prompting the firm to recommend a set of “consumer experience” and “compounder” stocks that are less tied to AI spending [2][1].
At a glance
| At a glance | |
|---|---|
| S&P 500 weekly change | –1.6% |
| Nasdaq Composite weekly change | –2.9% |
| AI‑related ETF (Global X) weekly change | –7.5% |
| SOX index YTD gain | +150% |
The week’s equity sell‑off was led by AI‑linked names, with the Nasdaq falling nearly twice as much as the broader market. The Global X Artificial Intelligence & Technology ETF, a barometer for AI‑related equities, tumbled 7.5% [2]. At the same time, the Philadelphia Stock Exchange Semiconductor Index (SOX) has rallied roughly 150% over the past year, underscoring the volatility of the chip segment that has been the primary conduit for AI capital expenditure [1].
Goldman’s asset‑allocation head, Christian Mueller‑Glissmann, said the “risk appetite indicator” has risen, driven initially by AI‑related capex and more recently by geopolitical factors such as the reopening of the Strait of Hormuz [1]. Yet he cautioned that bullish sentiment does not automatically translate into a bearish stance on the broader market, noting the risk of “setbacks and corrections if the market doubts these drivers” [1].
To address investor demand for exposure outside the AI‑heavy arena, Goldman identified two thematic buckets:
Consumer experience – stocks that benefit from ongoing consumer spending. Notable picks include Formula One Group Series (a Liberty Media tracking stock tied to the FIA Formula One World Championship) and Live Nation, which is expected to see double‑digit fan growth worldwide [2].
Compounders – highly profitable companies trading at steep discounts relative to their earnings potential. Examples cited are MSCI (a financial‑services index provider) and Marriott International, both viewed as having strong moats and lower cyclicality, with analysts assigning buy or strong‑buy ratings [2].
These selections aim to provide diversification away from the “volatile part of the AI capex spectrum” represented by semiconductor makers, which have attracted heavy positioning through ETFs and options [1].
The divergence between a soaring semiconductor index and a slipping broader market highlights the growing split between AI‑driven growth and more traditional value‑oriented investing. Whether Goldman’s alternative picks can deliver resilience amid AI volatility remains an open question for investors.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jul 28, 2026 · How we report
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