Goldman Sachs Positions Cloud and Data Centers as Top Picks in China's Internet Sector, Recommends Alibaba and Kingsoft Cloud

Stock News04-02 14:34

Following the release of corporate earnings and a research tour of China's internet industry, Goldman Sachs has reaffirmed its preference for the cloud and data center sub-sector. The firm cites sustained growth in enterprise and AI agent adoption, alongside the increasing popularity of consumer AI assistants, as key drivers for expanding demand for AI computing resources. This trend is also enhancing pricing power within the cloud and computing sectors. Core investment targets highlighted include GDS-SW, VNET Group, BABA-W, and Kingsoft Cloud. Goldman Sachs has elevated e-commerce and mobility to its second preferred sub-sector, with core investment targets being PDD Holdings and FULL TRUCK ALLIANCE, due to their attractive valuations and improved first-quarter trends. The gaming and entertainment sub-sector is ranked third, with core investment targets identified as TENCENT and BILIBILI-W, supported by a further shift in user time towards entertainment and steady growth in advertising revenue.

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