Goldman Sachs Upgrades Cloud and Data Center Sector in China; Recommends Alibaba and GDS Holdings

Goldman Sachs has upgraded the Cloud & Data Center sector in China, highlighting it as a top preference in the internet sector in a research report dated December 8, 2025. The bank recommends Chinese companies Alibaba Group Holding Ltd. and GDS Holdings Ltd. for purchase, citing expected growth driven by demand for AI training and inference. Additionally, the report notes a favorable outlook for order volumes, expansion of investments, and capital recycling in the data center industry, supported by the multi-chip strategy of hyperscale cloud service providers.