Goldman Sees New Rally in Memory Stocks Amid Technical Improvements

Memory stocks are gaining momentum as Goldman Sachs points to improving technical conditions. Among the securities displaying patterns that could signal a shift from recent consolidation are Micron Technology MU, Sandisk SNDK, and two exchange-traded funds: the iShares MSCI South Korea ETF (EWY) and the Roundhill Memory ETF (DRAM).

The setup comes as positioning in the broader AI trade remains relatively light. Goldman's prime brokerage data show that gross leverage among U.S. fundamental long/short hedge funds is at its 27th percentile of the past year, while net leverage was at the fourth percentile.

Options activity has also cooled. The CBOE Semiconductor ETF Volatility Index had dropped to about 36 from roughly 65 in July, indicating a substantial decline in expected price swings.