Goldman Sachs: Cloud and data center sub-industries remain the most promising sectors for the second half of the year.

Goldman Sachs released a report indicating that the sub-sectors of cloud computing and data centers are still the most favored areas for the bank in the second half of 2026. The recommended targets are: Alibaba, Wanguo Data, Century Internet, and Kingsoft Cloud. Despite the lower-than-expected expansion of existing production capacity and pace of entry in the first quarter, the bank expects that price increases in cloud services and continued Token expansion will drive cloud growth and profit margin expansion, while capital expenditures of super-scale cloud operators will also increase. The bank currently estimates that ByteDance, Baidu, Alibaba, and Tencent will have a total capital expenditure of $100 billion in 2026, with a higher proportion in the second half of the year, supporting the accelerated quarterly growth of data centers in the second half of the year. At the same time, the soft macroeconomic/consumption trends so far this quarter have led the bank to elevate the investment priority of gaming and entertainment to second place, with NetEase being a new recommended target alongside Tencent. The bank has downgraded e-commerce and travel mobility to third place, reiterating JD.com as a major recommended target for the second half of 2026, with expected revenue and profit recovery on an annual basis in the second half of the year. In terms of AI model companies, the bank specifically mentions MiniMax, as its annual recurring revenue has the potential to increase, with a tendency for risk-return to increase.