Goldman Sachs: SenseTime has received multiple orders for new projects using generative AI technology, raises target price to 3.53 Hong Kong dollars.

Goldman Sachs released a research report indicating that the latest news from SenseTime shows that it has received new orders for generative AI projects from enterprise and government clients in the fields of education, healthcare, media, finance, transportation, and others. The bank expects future projects to accelerate growth, mainly driven by increased spending on cloud infrastructure in mainland China and favorable policies such as the AI+ Action Plan announced in August. The bank believes that SenseTime can provide a full range of solutions covering computing power, large-scale AI infrastructure, AI basic models, and generative AI applications to meet the needs of different clients. It is also expected that the company will continue to focus on large projects in the coming years to ensure higher efficiency and increase revenue. The bank has raised its target price from HK$3.09 to HK$3.53 and maintains a "buy" rating.