Woofun AI reports that Goldman Sachs Trading Desk anticipates the ongoing semiconductor rally to persist, citing renewed fund buying after hedge funds unwound approximately 80% of their year-to-date net positions in global semiconductor stocks since mid-June. Recent capital inflows have concentrated heavily on storage and semiconductor equipment sectors, which experienced the most significant prior pullbacks. Notable purchases include storage names such as STX, WDC, MU, SNDK, and equipment leaders like AMAT, ASML, and LRCX, aligning with broader market rebounds in these sub-sectors.

Data indicates that while positioning remains elevated, extreme overcrowding has subsided. Net exposure to global semiconductor stocks fell from a June peak of 24% to approximately 19%, though this remains at the 84th percentile for the past year and 97th percentile for the five-year period. U.S. semiconductor exposure similarly declined from 14% to 11%, corresponding to the 79th percentile for the one-year period and 96th percentile for the five-year period. Goldman Sachs suggests that rapid deleveraging is largely complete, and funds may continue replenishing hard-hit sectors with fundamental support, provided AI capital expenditure guidance and earnings reports do not deteriorate. The rally's continuation depends on cloud companies increasing AI capex, storage prices supporting earnings, and equipment orders validating data center expansion.