Published on 29 Jan 2025 on Benzinga
...Bear Market': Goldman Sachs - Advanced Micro Devices (NASDAQ:AMD), iShares...
The Magnificent Seven stocks suffered their sharpest drop since last autumn after news broke that DeepSeek, an open-source AI model from China, had entered the fray, raising concerns over pricing power and competition in the sector. Yet, despite the tech sell-off, Goldman Sachs sees no reason to panic, indicating this is a temporary setback rather than the start of a deeper bear market.
In a note shared Wednesday, Goldman Sachs analyst Peter Oppenheimer indicated that bear markets typically emerge when profit expectations decline due to growing recession fears —conditions that are not currently in place thanks to solid economic fundamentals.