HSI1 26,559.95 -325.29 247.87B
HSCEI1 9,031.38 -61.96 92.09B
Back    Zoom +    Zoom - Block Traded
G Sachs: 2026 Key Yr for AI Investment; BABA-W/ TENCENT/ PDD Favored
2026-02-06 15:49:26
Goldman Sachs issued a research report emphasizing that 2026 will be a critical year for accelerating AI investment and for Chinese internet giants to defend their core positions.

Investors' focus and concerns are mainly on the intense competition among consumer AI super applications. The broker believed that agentic or seamless transaction capabilities, as well as social/ push-based functions, will be key to user retention and application expansion.

The potential growth in AI capital expenditure by Chinese hyperscalers during 2026-2027 will be crucial for long-term success.

Goldman Sachs was most optimistic about three sub-segments, naming cloud & data centers, games & entertainment, and AI models. In the long term (1-3 years), the broker considered BABA-W (09988.HK) and TENCENT (00700.HK) to be the most competitive stocks among Chinese internet giants.

However, Goldman Sachs also saw potential for some mid-to-large-sized companies to surpass the giants in 2026. Among the giants, the broker particularly highlighted PDD Holdings (PDD.US), whose valuation discount, strong value-for-money user perception and growth of Temu make it a key investment target.
~

AASTOCKS Financial News
Website: www.aastocks.com