Goldman Sachs expects the Federal Reserve and the European Central Bank to pause rate hikes this week and raise rates again in December. US household demand for equities will remain robust in 2027, but depends on employment, wealth, and competition from cash and bond yields.
Goldman Sachs sees data-center power generation as a new profit engine for Weichai: gas-fired generator sets will drive near-term growth, while fuel cells will scale up from 2028. Its target price also incorporates earnings from the primary power-supply business in 2030, making the pace at which growth materializes a direct influence on valuation.
Parameter expects revenue to grow by more than 30% in calendar 2027 and an EBITDA margin of about 40%. The business could boost Acuity’s earnings and add products such as leak detection to Distech’s portfolio. The deal is to be funded with 500 million dollars in borrowing and 175 million dollars in cash. Goldman Sachs maintained its Neutral rating.
Meta has launched a phased equity financing plan to fund its expanding AI investment. Goldman Sachs is positive on the core business and Muse’s early performance, but expects margins to remain under pressure; its valuation does not yet incorporate the new financing.
The computing business continues to benefit from the ramp-up of 2.5D packaging and CPU programs, but third-quarter margins and fourth-quarter revenue and EPS guidance all fell short of market expectations. Goldman Sachs maintained its Neutral rating and cut its price target from $ '65' to $ '56', focusing on whether capacity expansion can deliver stronger earnings and cash flow.
Results from three cloud giants will test demand for AI computing capacity and returns on investment. Goldman Sachs expects the AI boom’s boost to economic growth to peak between the end of 2026 and early 2027, while energy prices and interest rates add downside pressure to growth.
Goldman Sachs expects Apple’s revenue for the September quarter to be broadly in line with consensus, with iPhone growth driven mainly by price increases and a higher share of premium models; its profit expectations for the December quarter, however, are below consensus. The target price rises to 390 dollars, mainly reflecting greater confidence that Duo will drive upgrades, rather than higher earnings forecasts.
Third-quarter revenue rose 31% and operating profit grew 30%, but net profit increased only 5%. Goldman Sachs believes operations remain resilient; the key factors are the timing of acceptance and delivery, a rising share of low-margin businesses, and whether North American orders can continue to translate into revenue amid policy uncertainty.
Global equities fell about 1% over the week, with AI-related stocks and capital expenditure beneficiaries lagging. Goldman Sachs has turned its attention to borrowing costs: interest burdens have already eroded profits, and refinancing could also crowd out investment and shareholder returns, although overall leverage in Europe remains manageable.
Goldman Sachs’ risk appetite indicator has fallen to its lowest level since April 2025, but remains some way from historical contrarian signals. Technology stocks have become an important driver of cross-asset volatility. The bank continues to overweight equities, balanced by an underweight in credit, a short-term overweight in cash and a long-term overweight in bonds.
KOA’s second-quarter operating profit rose to about 2.6 times its level a year earlier, as sales growth, capacity utilization and product mix improved together. Goldman Sachs sees this as a reason to be optimistic about the earnings momentum of Japanese passive-component companies, but most of the increase in orders came from orders placed early, and there is also a lag in passing on higher material costs.
Goldman Sachs believes CATL’s transition into an energy storage system integrator could improve both gross profit per unit and its competitive position. Its price target therefore assigns a separate valuation to the energy storage business, but depends on earnings in 2030 and integration progress.
Lepu Medical’s third-quarter revenue and net profit fell 10% and 39% year on year, respectively. The devices business showed signs of stabilization, but price adjustments for pharmaceutical preparations continued to depress revenue, while investment in innovative drugs continued to consume profits. Goldman Sachs cut its target price from 15 yuan to 14 yuan and maintained its Neutral rating.
Retail and overseas businesses drove third-quarter revenue above Goldman Sachs’ expectations, but impairment losses, rising bitumen costs and a lag in price increases weighed on earnings. Goldman Sachs cut its profit forecasts and price target while maintaining its Buy rating. A recovery depends on cost pass-through and the efficiency of overseas expansion.
Third-quarter orders rose to $7.5 billion, but margins fell short of expectations and the stock dropped 9% after earnings. Goldman Sachs says project stages affected profit recognition and that order growth is sufficient to drive higher medium-term earnings forecasts, while lowering its valuation multiple.
Citing industry sources, the material says work has begun on a mandatory standard for installing C-V2X in vehicles. The demand framework is shifting from pilot projects to requirements for factory installation in vehicles, but the standard for commercial vehicles remains at the consultation stage, with a further 25-month transition period after it takes effect.
GF Securities believes downstream IT budgets are more likely to turn positive in the first quarter of 2027; Sealand Securities is focused on the recovery of Saiyi Information’s core business and the commercialization of its computing-power projects, with subsequent growth dependent on conditions including new-business expansion and cash flow.
Tianfeng Securities’ machinery team maps opportunities for deploying physical AI to specific manual tasks: apparel focuses on handling flexible fabric pieces; packaging and logistics cover loading, unloading, sorting and handling; welding highlights control systems and workstations. To understand the size of the opportunity, the corresponding worker pools must be considered alongside product coverage and development stage.
CLS analysis holds that the commoditization of general-purpose model capabilities is shifting software value toward industry knowledge and business execution. Industrial AI opportunities are expanding from standalone functions to production processes, but end-to-end applications depend on connecting equipment data, model decisions and on-site execution.
TMT Breakout believes Anthropic’s customer mix has improved and its cash generation has strengthened. The next question is whether October annualized revenue can exceed 73 billion dollars. Third-party data points to a recovery in spending, but price cuts, sample coverage and changes among large customers will determine whether this growth translates into overall revenue.
