New Delhi, Nov. 10 -- The recent decline in semiconductor stocks may be excessive, with current market levels offering an attractive buying opportunity for investors, according to a report by Goldman Sachs, which expects the sector to recover despite near-term uncertainties over artificial intelligence (AI) infrastructure spending.

Goldman Sachs said the semiconductor index, or SOX, has recorded its sharpest relative decline against the S&P 500 in the last 10 years, with the current drawdown approaching 30 points. This is significantly higher than previous instances when the relative decline crossed 20 points.

Historically, such periods of sharp underperformance have generally been followed by phases of outperformance, suggesting the re...