Memory Stocks Surge Against Trend as Goldman Sachs Sees End of Downturn

The U.S. memory chip sector has defied the trend by rising despite a decline in the three major stock indices on Wednesday. Goldman Sachs believes that this could be a sign that the worst phase of the downturn in the industry may have passed.

The bank pointed out that Micron Technology and SanDisk have broken free from their downward trends, while hedge fund positioning in the sector remains relatively low. Volatility in the semiconductor sector is also below its July peaks.

Goldman Sachs notes that these signs indicate investors may be repositioning themselves in the sector, with corporate fundamentals remaining unchanged compared to the previous earnings cycle.