Goldman Sachs: Cloud and data centers are among the top sub-sectors in the Chinese internet industry. We recommend Alibaba (09988) and Kingsoft Cloud (03896).

Goldman Sachs Group, Inc. released a research report stating that after the release of performance results and a trip to investigate the Chinese internet industry, they continue to prioritize cloud and data centers as preferred sub-industries. This is mainly based on the growth of enterprise and AI agents, as well as the popularization of consumer AI assistants, which will continue to drive the expansion of AI token demand. At the same time, the pricing power of cloud and tokens will increase, with core investment targets including GDS-SW (09698), VNET Group, Inc. Sponsored ADR (VNET.US), BABA-W (09988), and KINGSOFT CLOUD (03896). The bank has elevated e-commerce and mobile travel to the second preferred sub-industry, with core investment targets being PDD Holdings Inc. Sponsored ADR Class A (PDD.US) and Full Truck Alliance Co. Ltd. Sponsored ADR Group (YMM.US), due to their attractive valuation and improved trend in the first quarter. Gaming and entertainment are listed as the third preferred sub-industry, with core investment targets being TENCENT (00700) and BILIBILI-W (09626), due to users further shifting their usage time towards the entertainment sector, and steady growth in advertising revenue.