TLDR: SenseTime-W’s stock experienced a notable rally on September 19, 2025, after Goldman Sachs significantly raised its target price for the company. The upgrade reflects heightened expectations for SenseTime’s ToC (To-Consumer) business expansion, driven by the robust development and monetization potential of its generative AI technologies, aligning with China’s broader ‘AI Plus’ strategic initiatives.
SenseTime-W (0020.HK), a leading artificial intelligence company, witnessed a substantial increase in its share price on September 19, 2025, surging over 6% during trading to hit HKD 2.79, marking a new high since April 2023. This surge propelled the stock’s year-to-date gains to over 80%.
The positive market reaction followed an announcement that Goldman Sachs had significantly upgraded its target price for SenseTime-W, raising it from HKD 2.72 to HKD 3.09, while maintaining a ‘Buy’ rating. This latest revision builds upon an earlier upgrade in late August 2025, when Goldman Sachs had already increased the target price from HK$1.83 to HK$2.72, moving the stock from a ‘Neutral’ to a ‘Buy’ recommendation.
Goldman Sachs’ revised outlook is primarily driven by an upward adjustment in its expectations for SenseTime’s ToC (To-Consumer) business expansion. The investment bank highlighted the pivotal role of generative AI in promoting the company’s innovative business development. Specifically, Goldman Sachs anticipates that SenseTime will successfully monetize its generative AI offerings, such as productivity tools like ‘Office Little Raccoon,’ by introducing subscription fees on a monthly or annual basis after initial free trials.
This optimistic assessment is further bolstered by the Chinese State Council’s ‘AI Plus’ guidelines, announced in August 2025. These policies are designed to encourage increased consumer spending on artificial intelligence, thereby fostering the growth of SenseTime’s generative AI business. The company has already demonstrated strong performance, reporting better-than-expected first-half 2025 revenues with a 36% year-over-year growth. Its generative AI business segment, in particular, saw a remarkable 73% year-over-year growth, fueled by the adoption of its productivity and interactive tools.
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Looking ahead, Goldman Sachs projects a substantial increase in the revenue contribution from SenseTime’s generative AI business, expecting it to rise from 64% in 2024 to an impressive 91% by 2030. This forecast is underpinned by the company’s comprehensive suite of offerings, which spans AI foundation models, industry-specific solutions, and application software. The upgrade also reflects a broader market re-rating of China’s AI supply chain, with SenseTime’s projected 30% potential upside surpassing the 9% average upside for Goldman Sachs’ Greater China Technology coverage. The broker forecasts SenseTime-W’s loss per share (LPS) to be RMB0.07, RMB0.03, and RMB0.01 for 2025, 2026, and 2027, respectively.
