Goldman Sachs analysts have turned surprisingly bearish on chipmakers, advising investors to hedge their exposure to the sector by purchasing put options. In a note shared Friday, analyst Arun Prakash, CFA, cautioned about the potential for further downside in the semiconductor sector in the near term. This warning comes after recent losses triggered by news of potential heightened China export restrictions. “We believe the extreme crowding, geopolitical risks, upcoming earnings, and low skew provide an attractive opportunity for investors to hedge drawdown risks,” stated Goldman Sachs. Hedging Strategy: Buy Puts On Semiconductor ETF The firm advises investors to consider buying 3-month 5% out-of-the-money (OTM) put options on the VanEck Semiconductor ETF (NYSE:SMH). Semiconductor stocks have seen a significant rally since the start of 2023, with the iShares Semiconductor ETF up by an eye-popping 153%, primarily driven by ...