Goldman Sachs: AI Stocks Experience High Volatility, But Positions Are Not Yet Extreme

On August 21, Rich Privorotsky, head of Goldman Sachs' One Delta, pointed out that there has been significant volatility in AI and momentum trading over the past 48 hours, with Goldman Sachs' GSPUMOMO momentum portfolio having dropped nearly 7%. However, according to Goldman Sachs Prime data, the changes in positions have been much more moderate: momentum exposure is currently close to neutral, and recent investors have mostly increased their net exposure, with total leverage not showing a significant rise again. This is particularly important as the market has just gone through a significant de-risking process in July. Although investors still hold a considerable amount of AI and semiconductor exposure, they are noticeably far from previous peak positions. Internal leverage in semiconductors has decreased, but there is still a certain amount in the system, which could trigger passive reductions and forced selling if prices drop rapidly. Therefore, the recent sharp fluctuations in AI stocks may be further amplified by the low market liquidity in August. The intraday price movements appear to be very 'fundamental', but may not correspond to equal magnitude changes in fundamentals. At this stage, it is more suitable to continue observing total leverage, Prime positions, and semiconductor capital flows to assess whether this round of volatility will evolve into a broader de-risking.