Goldman Sachs: Cloud and Data Centers are the Preferred Sub-industries in China's Internet Sector, Recommending Alibaba and Kingsoft Cloud, etc

AASTOCKS
2026.04.02 03:32

Goldman Sachs published a report on China's internet, stating that after the earnings announcements and a tour of the Chinese internet industry, it continues to prioritize cloud and data centers as its preferred sub-industries. This is mainly based on the growth of enterprises and AI agents, as well as the widespread adoption of consumer AI assistants, which continue to drive the expansion of AI token demand. At the same time, the pricing power of cloud and tokens is improving. Core investment targets include GDS Holdings Limited (09698.HK), Century Internet (VNET.US), Alibaba (09988.HK), and Kingsoft Cloud (03896.HK).

The firm upgraded e-commerce and mobile transportation to the second preferred sub-industry, with core investment targets being PDD (PDD.US) and Manbang (YMM.US), due to their attractive valuations and improved trends in the first quarter. Gaming and entertainment were listed as the third preferred sub-industry, with core investment targets being Tencent (00700.HK) and Bilibili (09626.HK), as user time is further shifting towards entertainment, and advertising revenue is growing steadily

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