Goldman Sachs Trader Shifts Stance on AI Stocks
Shawn Tuteja of Goldman Sachs has reversed his bullish recommendation on AI stocks, warning that the trade has become overly crowded among hedge funds.
Volatility trader Shawn Tuteja has shifted his position on artificial intelligence stocks, moving away from the bullish outlook he maintained in late August. Tuteja previously recommended that investors buy call options on the Goldman Sachs AI leaders basket, stating that "the risk-reward to owning upside was extremely compelling."
This reversal follows record closing levels for the S&P 500 and the Nasdaq 100. Tuteja now suggests that the trade has become overly crowded among hedge funds, which has shifted the asymmetry of the position. While the Goldman Sachs Private Wealth Management derivatives desk had previously pitched these AI options as cheap and under-owned, the current market conditions have led Tuteja to suggest taking the opposite side of the trade.
