Goldman says retail investors are buying this market dip. Here are their favorite stocks

Published Mon, Mar 28 202212:27 PM EDTUpdated Mon, Mar 28 20222:39 PM EDT

The market may have been selling off to start the year, but retail investors are buying the dip and boosting their portfolios, Goldman Sachs said. Investors continue to weigh the outcome of the Fed's rate-hike decision and the conflict in Ukraine, which has led to a volatile month for the markets. But stocks are beginning to stage a comeback. While the S & P 500 and the Nasdaq are down year-to-date, both are up more than 3% and over 2% this month, respectively. Goldman thinks the current macro environment is creating a unique opportunity for investors. The bank says households will buy $150 billion in equities this year, and many are moving away from bonds and cash. Foreign investors will also purchase $50 billion in equities stateside as they look to invest away from the conflict in Ukraine, Goldman forecasts. Amid the ongoing market conditions, the bank highlighted a basket of favorite retail stock picks in a note on March 25. It included technology giants such as Apple and Amazon , chipmakers, electric vehicle companies, and streaming giants such as Netflix . Many of the stocks are down year-to-date amid a broader sell-off that has hard-hit the tech sector but posted strong gains between March 14 and March 24. Here are some of the favorites that made the list: Electric carmaker Nio boasted the largest return between March 14 and March 24, climbing 56%. Its stock has been volatile in recent weeks. Shares of the China-based company dipped earlier this month after it reported a beat on revenue in the recent quarter but saw delivery forecasts fall short of analysts' expectations. Nio's stock is down 35% this year and off 10% since the start of the month. Within the electric vehicle market, Goldman Sachs is also betting on Tesla , which saw its shares rise about 7% on Monday following news that it wants to split its stock to pay a stock dividend . Shares are up nearly 25% this month, and they gained 32% between March 14 and March 24. While semiconductors have notoriously struggled amid ongoing supply chain disruptions and inflation fears, retail investors are also betting on chipmakers like Nvidia . The company's stock is up nearly 13% this month and returned 32% between March 14 and March 24. Along with Intel , Nvidia led a rally last week following a slew of optimistic commentary from both companies. But even amid the rebound, Goldman remains cautious. The bank maintained its earnings estimates on Nvidia but cut expectations across the sector on Monday. Goldman cited a "more challenging macro backdrop" including slowing growth as inflation rises. Meanwhile, U.S-listed China stocks have seesawed in recent weeks following renewed delisting concerns in the U.S. coupled with a lockdown and growing scrutiny at home. But e-commerce giant Alibaba made the cut for retail favorites. After tumbling earlier this month , shares of Alibaba bounced back as China signaled support for the listing of companies overseas and the e-commerce giant upped its share buyback program . Alibaba's stock has climbed about 8% this month but is down more than 4% since the beginning of the year. It was among the biggest gainers on Goldman's list, jumping 48% between March 14 and March 24. Meme stock AMC Entertainment staged a roughly 30% comeback in March. Shares also garnered a 49% return between March 14 and March 24, placing it among the high-flying names in Goldman's list. Shares of the movie theater chain rallied earlier this month after it revealed a stake in a Nevada gold and silver mine known as Hycroft Mining . Its stock soared Monday as CEO Adam Aron said the company would look for more "transformational" deals in an interview with Reuters.

Tesla CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai on Jan. 7.

Aly Song | Reuters

The market may have been selling off to start the year, but retail investors are buying the dip and boosting their portfolios, Goldman Sachs said.