China internet stocks may outpace AI hardware, Goldman Sachs’ Moe says

Goldman Sachs’ Tim Moe said Chinese internet stocks may outperform AI hardware peers as investors reassess sector exposure, according to a 3-minute, 38-second CNBC “Squawk Box Asia” video published Nov. 5.

The call matters because the AI trade has favored hardware names; CNBC’s Nov. 5 page listed Baidu down 0.15% and Alibaba down 0.09% after hours, compared with a 1.67% gain for NNN1-FF on the same quote panel.

Moe pointed to improving earnings potential as losses narrow in competitive businesses, according to CNBC. When loss-making units cut operating losses, group earnings can improve even if revenue growth does not accelerate.

The argument is relative, not market-wide. Moe framed the opportunity as Chinese internet companies performing better than hardware-led AI names, rather than as a forecast for the broader technology sector.

The risk is that the rotation depends on two conditions CNBC attributed to Moe: investors reassessing AI hardware exposure and competitive losses continuing to narrow. If either stalls, the earnings case would be weaker.

CNBC’s page showed NNN1-FF up 0.80, or 1.67%, alongside the video. No dated catalyst for the trade was provided.