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Yahoo Finance | Goldman Sachs spots Nvidia-linked shift not seen in 13 years

Goldman Sachs reported that hedge funds sold off stocks in March at the fastest pace in 13 years, signaling growing anxiety across markets and a shift away from high-profile growth names like Nvidia (NVDA), Tesla (TSLA), and Palantir (PLTR). This rapid de-risking reflects heightened concerns over elevated oil prices, geopolitical instability, and shaky investor sentiment, prompting fund managers to prioritize capital preservation over upside potential. The S&P 500 was down about 4% year-to-date at the time, underscoring the broader market caution.

In response to this risk-off environment, hedge funds are rotating into defensive sectors, favoring stable, lower-volatility names such as Walmart (WMT) and Costco (COST). These consumer staples offer predictable earnings and steady demand, making them attractive during periods of market turbulence. Goldman Sachs’ data indicates this shift is not isolated but reflects a broader reevaluation of market leadership, with investors reducing exposure to tech, financials, and industrials amid fears of a deteriorating economic backdrop.

Despite the selloff pressure, Nvidia still holds relative value on certain metrics—its forward non-GAAP P/E of 21.39 and GAAP P/E of 21.80 are now in line with or below sector medians, and its PEG ratios of 0.54–0.56 suggest the stock is not excessively priced relative to growth. However, its forward price-to-sales ratio of 11.67 remains far above the sector median of 2.93, indicating Wall Street continues to assign a significant quality premium. While short-term momentum shows Nvidia trading above its 10-day moving average, it remains below key longer-term averages, suggesting a cautious approach: long-term investors may buy selectively, but short-term traders should wait for a reclaim of the $180–$183 range before considering a breakout.

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Goldman Sachs spots Nvidia-linked shift not seen in 13 years

Smart money is getting a lot more cautious on the stock market’s finest. According to TipRanks, Goldman Sachs said that hedge funds sold off stocks in March ...

Yahoo Finance