Goldman Sachs sees oversold chip stocks as buying opportunity after November selloff
Goldman Sachs analyst James Schneider released a note on November 10 saying semiconductor stocks are now clearly in oversold territory, naming Nvidia, Broadcom, and AMD as top buys. The Philadelphia Semiconductor Index fell 21 percent in the past month, including an 11 percent plunge on November 5 following concerns about Democratic election victories potentially slowing AI infrastructure spending. Goldman's valuation analysis shows that even assuming zero earnings growth in 2028, Nvidia and Broadcom trade at 12 and 13 times earnings respectively, which Goldman considers compelling. The analyst acknowledged that few catalysts may emerge before year-end, but argued the risk-reward balance looks favorable for selected names. Cantor Fitzgerald and HSBC analysts agreed the selloff is overdone. However, some strategists like Dan Ives warned chip stocks could fall another 10 to 12 percent, while others like Tom Lee called the decline an overreaction with potential for 20 percent tech upside.
Key facts
- Philadelphia Semiconductor Index fell 21 percent in one month and 11 percent in a single day on November 5, 2026
- Goldman Sachs analyst James Schneider named Nvidia, Broadcom, and AMD as top buys on November 10
- Nvidia and Broadcom trade at approximately 12 and 13 times earnings even with zero growth assumed for 2028
- Semiconductor stocks are down approximately 38 percent from their June 2026 peak
- Cantor Fitzgerald and HSBC also called the selloff overdone, citing 9 times 2028 earnings multiple
How different outlets framed it
Right-leaning coverage: Right-leaning outlets like Fox Business framed the selloff as partly driven by Democratic election victory fears around data center regulation and AI infrastructure scrutiny, while noting market analysts disagree on whether the sell-off is justified or overdone.
Limits of this briefing
Goldman Sachs' call assumes AI spending growth continues largely as forecasted. If major cloud companies cut AI investments significantly in 2027, chipmaker earnings could fall sharply, making seemingly cheap valuations turn out to be value traps. Political risk related to potential AI regulation under Democratic governance was a factor in the initial sell-off but remains uncertain.
Sources
- Yahoo Finance: Stock market today: Goldman Sachs calls stocks 'oversold.' Here are the names it says to buy Centre
- CNBC: 'Markets bottom on bad news' maxim rings true as chip stocks rally amid Nvidia scandal Centre
- Fox Business: Nasdaq tumbles 5%, Dow plunges more than 1,800 points Right
- Benzinga: Nvidia Stock Most Oversold Since 2019 on Huang Spy Probe Centre
- CoinCentral: Goldman Sachs Says Chip Stocks Are Oversold, Names Nvidia, Broadcom and AMD as Top Buys Centre