• Goldman Sachs (GS) traders expect technology stocks to extend gains into the new year, with the Nasdaq 100 up about 22% in 2025.
  • The firm highlights 'fallen angels'—once-favored stocks now well below their highs—including Roblox (RBLX), Visa (V), Mastercard (MA), and DoorDash (DASH).
  • Analysts see improving fundamentals and renewed upside in each, with price targets implying meaningful gains as tech leadership broadens.

Goldman Sachs traders are positioning for continued tech leadership into 2025, but with broader participation beyond the mega-cap AI leaders that have dominated recent rallies. According to people familiar with the matter, the trading desk and research teams have identified a basket of 'fallen angels'—stocks that were market favorites but have since traded significantly below prior highs—as attractive laggards with improving fundamentals and upside potential. This view aligns with Goldman's broader bullish equity outlook, which includes an S&P 500 target of 7,600 by 2026, driven heavily by tech and AI-linked earnings growth.

The call comes as the Nasdaq 100 has rallied approximately 22% in 2025 year-to-date, though returns have been front-loaded in the first half. Goldman's analysis suggests that while mega-caps like NVIDIA (NVDA) and Microsoft (MSFT) remain core holdings, opportunities are emerging in names that have underperformed. 'We're seeing a broadening of tech leadership, and these fallen angels offer compelling risk-reward as execution improves,' one source noted, speaking on condition of anonymity. The firm views the group as attractive opportunities despite potential macro risks later in 2026, projecting sturdy global growth of about 2.8% in 2026 alongside non-recessionary Federal Reserve rate cuts.

Roblox, Visa, Mastercard, and DoorDash each fit the 'fallen angel' label due to their distance from peak valuations, yet Goldman analysts point to specific catalysts for each. For Roblox, revenue growth has been robust with double-digit increases, but profitability concerns have weighed on the stock as the company invests heavily in infrastructure and safety. Efforts to expand into older demographics and international markets are seen as key drivers. Visa and Mastercard, meanwhile, have posted solid earnings on resilient consumer spending and cross-border travel recovery, though their growth rates have normalized post-pandemic. Regulatory scrutiny over interchange fees and antitrust issues in the U.S. and EU has created valuation discounts relative to AI-centric peers, but Goldman sees their stable cash generation and investments in real-time payments as underpinning upside.

DoorDash faces its own set of challenges, including regulatory risks around labor classification and local fee caps, which have kept the stock volatile. However, revenue growth remains strong as the platform expands into grocery and convenience delivery. A spokesperson for DoorDash declined to comment on the Goldman report, while attempts to reach representatives from Roblox, Visa, and Mastercard were unsuccessful. Market data as of this week shows these stocks trading below their 52-week highs, with analysts' price targets suggesting double-digit percentage gains if execution continues.

This focus on fallen angels reflects a broader market trend where investors are increasingly seeking catch-up trades in quality laggards after a period of narrow mega-cap dominance. Goldman's macro outlook, detailed in recent research notes, anticipates a supportive environment with stable inflation and gentle disinflation, which could benefit growth stocks. However, the firm cautions that 'hot valuations' pose risks if earnings or policy disappoint later in 2026. For now, the trading desk's positioning signals confidence in a tech-led rally with more inclusive participation, offering a potential roadmap for investors looking beyond the usual suspects. Correction: An earlier version misstated the Nasdaq 100's 2025 performance; it is up about 22% year-to-date, not annually.