Goldman Sachs Dumps Broadcom from Conviction List Amid Cooling AI Frenzy

Broadcom (AVGO) stock fell by 2% on August 3 as Goldman Sachs removed it from its 'conviction list' of top-performing stocks. The decision was made by Gabriela Borges, a top five-star rated analyst at Goldman Sachs, who stated that the bank is shaking up its conviction list to include stocks for a broadening market.

Borges added that the investment bank removed Broadcom due to expectations that the frenzy over AI-related stocks will cool in coming months. The 'conviction list' maintained by Goldman Sachs is a selection of stock picks that the investment bank has high confidence will outperform the market moving forward.

In addition to removing Broadcom, Goldman Sachs also took Delta Air Lines (DAL), Microsoft (MSFT), Viking Holdings (VIK), and United Parcel Service (UPS) off its conviction list. Meanwhile, Dick's Sporting Goods (DKS), Johnson & Johnson (JNJ), and ServiceNow (NOW) were added.