Goldman Sachs sees limited AI leverage, downgrades chipmakers

Entegris

15/12/2025 17:43

** Chipmaker shares fall as Goldman Sachs flags limited AI leverage and "lacklustre" execution

** Brokerage downgrades Arm Holdings ARM.O to "sell" from "neutral," shares down 3.3% at $126.54

** "We also expect ARM to continue increasing R&D spending to pursue the chip manufacturing opportunity, which will drive less financial leverage in FY27/FY28" - Goldman Sachs

** Texas Instruments TXN.O downgraded to "sell" from "buy", shares down marginally

** Brokerage notes TXN's capacity and inventory choices in the last cycle will likely result in a lack of cyclical margin expansion relative to peers

** Goldman Sachs downgrades Entegris ENTG.O to "sell" from "neutral," shares down ~3% at $89.82

** Brokerage expects ENTG to perform worse than competitors, noting slow capex to build semiconductor fabrication plants

 (Reporting by Anhata Rooprai in Bengaluru)

 ((Anhata.Rooprai@thomsonreuters.com))