Goldman Sachs: Competition in the mainland AI field is expected to intensify before the Spring Festival, optimistic about Alibaba (09988) and Tencent (00700).

Goldman Sachs has released a research report stating that competition in the consumer-level artificial intelligence field in China escalated further before the Spring Festival this year. It is expected that the final entry into AI will still be concentrated on TENCENT (00700), BABA-W (09988), and ByteDance. The report mentions that Alibaba and Tencent are still favored in the one to three-year dimension as the best layout for internet giants, but also warns that some tech companies may outperform the giants this year. The bank predicts that regulatory policies will present a combination of growth promotion and "anti-overwork", which will have a positive impact on the industry competition landscape. Goldman Sachs predicts that this year will be a year mainly driven by alpha and profit growth, with the three most favored subsectors being cloud and data centers, gaming and entertainment, and AI models.