Goldman Sachs(US:GS) Guan Cha Zhe Wang·2025-11-24 10:44Group 1: AI Market Outlook in China - The development and application of artificial intelligence (AI) are opening new opportunities for the Chinese stock market, with a focus on application rather than just computational power [1][2] - Goldman Sachs' chief China equity strategist Liu Jinjun believes that the AI-driven stock rally in China is not a bubble, as Chinese tech companies can expand valuations and profits by focusing on applications [1][2] - The total market capitalization of China's top ten tech companies is $2.5 trillion, compared to $25 trillion for their U.S. counterparts, indicating a significant valuation gap [1] Group 2: Investment Sentiment and Concerns - There is growing optimism about China's rise as an AI superpower, especially following the launch of efficient low-cost models by startups like DeepSeek and new AI tools from major tech companies [2] - In contrast, the U.S. market is experiencing significant volatility, with concerns about a potential AI bubble as large tech firms announce massive capital expenditures in the AI sector [2][3] - Some investors argue that the current investment cycle in AI is a boom rather than a bubble, citing strong demand and supply dynamics [3] Group 3: Challenges in AI Implementation - A report from MIT highlights that despite $30-40 billion invested in enterprise AI, 95% of organizations are seeing no return on investment, leading to a divide in AI outcomes [6][8] - The report indicates that only 5% of integrated AI pilots are generating significant value, while most projects remain stalled without measurable impact on profits [6][8] - Key barriers to scaling AI solutions include a lack of learning and adaptation in most systems, rather than issues related to infrastructure or regulation [8][9]