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Investing.com - Goldman Sachs upgraded SenseTime Group Inc (HK:20) stock rating to Buy from Neutral on Friday, raising its price target to HK$2.72 from HK$1.83, representing a 30% potential upside.
The upgrade follows the Chinese State Council’s announcement of "AI Plus" guidelines in August 2025, which Goldman Sachs believes will encourage increased user spending on artificial intelligence and drive SenseTime’s generative AI business growth.
SenseTime reported better-than-expected first-half 2025 revenues with 36% year-over-year growth, while its generative AI business segment grew 73% compared to the same period last year, driven by productivity and interactive tools.
Goldman Sachs expects SenseTime’s generative AI business revenue contribution to increase substantially from 64% in 2024 to 91% by 2030, citing the company’s comprehensive offerings across AI foundation models, industry solutions, and application software.
The upgrade also reflects a broader market re-rating of China’s AI supply chain, with Goldman Sachs noting that SenseTime’s 30% potential upside exceeds the 9% average upside for its Greater China Technology coverage.
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