Chip stocks stumbled out of the Q3 gate after a record quarter — but Goldman says capex is powering the bull — buy the dip on Micron
Chips stocks like Micron, AMD, and Intel surged dramatically in the second quarter — adding $2 trillion in value — but have suddenly stumbled on the first day of Q3, with Micron dropping 11%. However, Goldman Sachs argues this whole bull market is being driven by a generational wave of capital spending, meaning the AI infrastructure buildout is far from over.
Idea
Chip stocks had a historic Q2, adding $2 trillion in value as the AI boom broadened beyond Nvidia. But the very first day of Q3 saw a sharp reversal — Micron dropped 11%, wiping out $200 billion. The key question is whether this is the start of a real rollover or just profit-taking after a massive run. Goldman Sachs provides the bull case: they say we're seeing a generational, broad-based increase in capital spending that is underpinning the entire bull market. That means the AI infrastructure buildout — which directly fuels demand for memory and processors from companies like Micron and AMD — is still accelerating. When a powerful multi-quarter trend hits a sudden one-day air pocket, it often creates a buying opportunity for investors who missed the original move.