--- title: "Goldman Sachs: Chinese Internet prefers games and entertainment by the end of the year, lowers target prices for Tencent Holdings Limited and Alibaba-W" type: "News" locale: "en" url: "https://longbridge.com/en/news/299273617.md" description: "Goldman Sachs released a research report stating that it has updated its preferences for the Chinese internet and artificial intelligence sub-sectors before the end of the year, elevating gaming and entertainment to the top choice for defensive growth, followed by cloud and data centers, as well as vertical/education, due to weak macro trends continuing to drag down e-commerce. Tencent Holdings, NetEase, Alibaba-W, Vnet, New Oriental, KE, JD.com, and MiniMax-W are rated as \"Buy,\" benefiting from resilient momentum in AI cloud, cost-effectiveness, and attractive valuations. The report states that considering the high investment in AI and recent equity financing, the firm has lowered Tencent's 12-month target price to HKD 650 and reduced its earnings per share forecast for the second half of 2026 by up to 5%; at the same time, it has lowered Alibaba's 12-month target price to HKD 172 and its target price for Alibaba's U.S. stock to USD 177 to reflect dilution, but based on strong demand for computing power, it has raised the cloud growth estimate for the September quarter to 53%" datetime: "2026-09-17T05:58:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299273617.md) - [en](https://longbridge.com/en/news/299273617.md) - [zh-HK](https://longbridge.com/zh-HK/news/299273617.md) generator: "portal-rs" --- # Goldman Sachs: Chinese Internet prefers games and entertainment by the end of the year, lowers target prices for Tencent Holdings Limited and Alibaba-W According to the Zhitong Finance APP, Goldman Sachs released a research report stating that it has updated its preferences for the Chinese internet and artificial intelligence sub-sectors before the end of the year, elevating gaming and entertainment to the top choice for defensive growth, followed by cloud and data centers, as well as vertical/education, due to weak macro trends continuing to drag down e-commerce. Tencent Holdings (00700), NetEase (NTES.US), Alibaba-W (09988), Century Internet (VNET.US), New Oriental (EDU.US), KE (BEKE.US), JD.com (JD.US), and MiniMax-W (00100) are rated as "Buy," benefiting from resilient momentum in AI cloud, cost-effectiveness, and attractive valuations. The report states that considering the high investment in artificial intelligence and recent equity financing, the bank has lowered Tencent's 12-month target price to HKD 650 and reduced its earnings per share forecast for the second half of 2026 by up to 5%; at the same time, it has lowered Alibaba's 12-month target price to HKD 172, and the target price for Alibaba (BABA.US) in the US stock market to USD 177 to reflect dilution, but based on strong demand for computing power, it has raised the cloud growth estimate for the September quarter to 53% ### Related Stocks - [JD.US](https://longbridge.com/en/quote/JD.US.md) - [BEKE.US](https://longbridge.com/en/quote/BEKE.US.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [VNET.US](https://longbridge.com/en/quote/VNET.US.md) - [EDU.US](https://longbridge.com/en/quote/EDU.US.md) - [NTES.US](https://longbridge.com/en/quote/NTES.US.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md) - [KJD.US](https://longbridge.com/en/quote/KJD.US.md) - [BABX.US](https://longbridge.com/en/quote/BABX.US.md) - [BABO.US](https://longbridge.com/en/quote/BABO.US.md) - [BABU.US](https://longbridge.com/en/quote/BABU.US.md) - [BABW.US](https://longbridge.com/en/quote/BABW.US.md) - [BBYY.US](https://longbridge.com/en/quote/BBYY.US.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [09999.HK](https://longbridge.com/en/quote/09999.HK.md) - [02423.HK](https://longbridge.com/en/quote/02423.HK.md) - [09901.HK](https://longbridge.com/en/quote/09901.HK.md) - [00100.HK](https://longbridge.com/en/quote/00100.HK.md) - [09618.HK](https://longbridge.com/en/quote/09618.HK.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [GS.US](https://longbridge.com/en/quote/GS.US.md) - [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md) - [80700.HK](https://longbridge.com/en/quote/80700.HK.md) - [HTCD.SG](https://longbridge.com/en/quote/HTCD.SG.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md) - [89618.HK](https://longbridge.com/en/quote/89618.HK.md) ## Related News & Research - [KE Holdings Details Ongoing Share Repurchases in Hong Kong and U.S. Markets](https://longbridge.com/en/news/300293780.md) - [BOCI Trims BABA-W TP to HKD166, Keeps Buy Rating](https://longbridge.com/en/news/300401620.md) - [KE Holdings CEO Peng Yongdong disposes of 16,033,983 common shares for $84.55 million](https://longbridge.com/en/news/300417152.md) - [BREAKINGVIEWS-Chinese labs are wild cards in AI governance](https://longbridge.com/en/news/300510450.md) - [Alibaba (NYSE:BABA) Ties Up With The Nets As Chip Access May Open Up](https://longbridge.com/en/news/300563656.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**