Ge Long Hui·2026-01-13 05:54Core Viewpoint - Bank of America Securities forecasts mixed stock performance for Chinese internet companies this year, with artificial intelligence expected to outperform again, while virtual consumption in entertainment and travel is anticipated to surpass physical e-commerce [1] Group 1: Industry Outlook - Artificial intelligence remains the biggest growth highlight in the industry, despite weak macroeconomic conditions putting pressure on consumer spending (e-commerce) and corporate spending (advertising) [1] - Current valuation for Chinese internet stocks is attractive, with a forecasted price-to-earnings ratio of 18 times, lower than the ten-year average of 23 times, the Nasdaq 100's 26 times, and the "Big Seven" in the US at 31 times [1] Group 2: Stock Selection - The company prefers artificial intelligence and online gaming stocks over e-commerce, with Tencent being the top choice due to its combination of AI-driven growth, stable market competition, optimal shareholder returns, and attractive valuation [1] - Alibaba is identified as the best investment target in Chinese artificial intelligence and remains the preferred stock in the Chinese e-commerce sector [1]