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Goldman Sachs: Tencent Holdings (00700) and Alibaba-W (09988) target prices for China's Internet Gaming and Entertainment will be lowered before the end of the year

Zhitongcaijing·09/17/2026 06:01:10
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The Zhitong Finance App learned that Goldman Sachs released a research report saying that it updated China's Internet and artificial intelligence sub-sector preferences before the end of the year and promoted gaming and entertainment as the first choice for defensive growth, followed by cloud and data centers, and vertical/education, which continued to drag down e-commerce due to weak macro trends. Tencent Holdings (00700), NetEase (NTES.US), Alibaba-W (09988), Century Internet (VNET.US), New Oriental (EDU.US), BEKE.US (BEKE.US), JD.com (JD.US), and MiniMax-W (00100) are rated as “buy”, benefiting from the resilient, cost-effective and attractive valuation of AI cloud.

According to the report, taking into account high investment in artificial intelligence and recent equity financing, the bank lowered Tencent's 12-month target price to HK$650 and cut the earnings forecast per share for the second half of 2026 by up to 5%; at the same time, it also lowered Alibaba's 12-month target price to HK$172 and the target price of BABA.US (BABA.US) US stocks to 177 US dollars to reflect dilution, but based on strong computing power requirements, the cloud growth estimate for the September quarter was raised to 53%.