Goldman Sachs·2025-07-16 15:25Investment Rating - The report maintains a "Buy" rating for Nvidia (NVDA) and highlights "Buy" ratings for Alibaba (BABA), Tencent (700.HK), and Baidu (BIDU) among cloud service providers, while GDS (GDS/9698.HK) and VNET are also rated positively among data center operators [4][29]. Core Insights - Improved chip availability is expected to enhance the ability of Chinese cloud service platforms (CSPs) to meet AI demand, particularly with Nvidia's new RTX Pro GPU tailored for China [2][4]. - The resumption of Nvidia's AI GPU exports to China is anticipated to alleviate the chip shortage that has hindered capital expenditure (capex) for CSPs and data center operators [2][3]. - There is a potential for sequential capex growth in the second half of 2025 as chip availability improves, despite cautious expectations for hyperscalers' capex and data center order volumes in the second quarter of 2025 [3]. Summary by Sections Market Reactions - The market is expected to respond positively to Nvidia's announcement regarding AI GPU exports, which could lead to increased capex spending by CSPs and improved order visibility for data center operators [2][4]. Company Performance - The report forecasts that Alibaba and Tencent's capex will likely reach a bottom in the second quarter of 2025 and recover sequentially in the latter half of the year [8]. - GDS's 12-month target price has been raised to US$40/HK$39, reflecting the net debt amount and the conversion of convertible bonds [16][17]. Future Developments - Upcoming events include the second quarter results for CSPs and data centers expected in mid-to-late August, updates on US AI chip export rules, and the listing of GDS's C-REIT [4].