Investor sentiment around artificial intelligence has soured on the back of the U.S. government's recent export curbs on AI chips — but Goldman Sachs is still bullish. "While investor sentiment around AI is weaker of late especially following new U.S. regulations, we think global competition could make the introduction of AI to major industries a primary focus," the investment bank's analysts, led by Daiki Takayama, wrote in an Oct. 23 note.
is in Goldman's conviction list of stocks as it is "well positioned to capture the AI mega trend in the coming years," the bank said, citing its "leading chipmaking capabilities" and 60% share of the global foundry market. The bank added that is likely to beat its peers thanks to " growing demand for high performance computing semiconductors … despite a near-term outlook made choppier by weaker demand from the mobile and PC industries ." The bank has a 12-month price target of 725 New Taiwan dollars on the stock, giving it a potential upside of just over 33% from its Oct. 24 close. Here are some of the other stocks in Goldman's conviction list.
, Goldman's conviction list stocks in this category include Chinese tech giant Hon Hai Precision Industry and Japanese electronics manufacturing company Ibiden . It has a target price of NT$149 for Hon Hai — giving it around 52% potential upside — and 10,000 Japanese yen for Ibiden, or around 35.5% upside. Apple supplier Hon Hai — also known as Foxconn — is currently undergoing tax audits and on-site investigations by Chinese authorities on its land use.