Goldman Sachs: 2026 marks a turning point year for China's internet giants, with Pinduoduo as the recommended focus stock.

Goldman Sachs report suggests that 2026 will be a key strategic turning point for Chinese internet giants, as investments in AI for consumers will gradually increase. Competition around creating AI super portals will intensify, and major players will also work more closely to defend their core positions. Goldman Sachs predicts that in 2026, some large and mid-cap stocks are expected to generate excess returns, and recommends focusing on three investment themes: earnings realization/growth per share, the narrative shift brought by AI and globalization, and shareholder returns. The bank also updates its quarterly sub-sector preferences ranking, with cloud computing and data centers, gaming and entertainment, and AI models as the top three. Among the giants, Pinduoduo is highlighted as a recommended stock due to its discounted valuation, strong value proposition, and robust growth in Temu.