Goldman Sachs sees limited AI leverage, downgrades chipmakers

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