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Goldman Sachs Adds Gaming and Tech Powerhouses to December Conviction List

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  Published in Stocks and Investing on Monday, December 8th 2025 at 14:03 GMT by 24/7 Wall St.

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Goldman Sachs Expands Its December Conviction List to Include Hot Gaming and Tech Names

On December 8 2025, 247WallSt reported that Goldman Sachs had added a host of “red‑hot” gaming and technology stocks to its coveted December conviction list. The firm—widely regarded as one of the most influential research houses in Wall Street—has a reputation for pinning down the most promising growth stories, and this latest update signals a strong bullish stance on the fast‑evolving consumer‑tech and gaming sectors.

1. Why the Conviction List Matters

Goldman Sachs’ “conviction list” is essentially a shorthand for the firm’s most‑believed investment ideas. Investors and fund managers often look to the list for signals about which companies Goldman believes are set for exceptional upside in the near to medium term. Historically, names that land on the list have delivered outsized returns, and the list is regularly referenced by media outlets, analysts, and retail traders alike.

In December 2025, the firm announced that it would review its list on a quarterly basis. The latest update not only adds a handful of fresh names but also reaffirms its bullish outlook on several previously included positions, reflecting both sustained growth prospects and changing market dynamics.

2. The New Additions: Gaming and Tech Powerhouses

Goldman’s latest additions focus on two interlocking sectors: cloud‑based gaming and high‑growth consumer technology. The added stocks include:

The list also includes a few technology names that serve as strategic complements to the gaming space, such as Microsoft (MSFT)—for its Xbox cloud gaming division—and Adobe (ADBE), whose creative cloud platform increasingly intersects with game design.

3. Underlying Thesis: “Play‑to‑Earn” and AI‑Driven Development

Goldman’s research team cited two main drivers for the bullish stance:

1. Play‑to‑Earn (P2E) and Blockchain Gaming
   The firm believes that the next generation of games—particularly those that combine virtual economies with blockchain—will unlock unprecedented monetization opportunities. Both Unity and Roblox are heavily investing in non‑fungible tokens (NFTs) and decentralized finance (DeFi) integrations, which could create new revenue streams and increase user engagement.

2. AI‑Assisted Game Development
   Advances in generative AI are dramatically lowering the barriers to entry for indie developers and speeding up production cycles for major studios. Unity’s recent launch of an AI‑powered “MetaHuman” plugin and Nvidia’s RTX AI platform are seen as game‑changers that could push revenue growth across the ecosystem.

These themes dovetail with Goldman’s broader view that consumer discretionary spending will accelerate as the pandemic‑era debt wave dissipates. With higher disposable incomes, gamers are expected to spend more on in‑game purchases, subscriptions, and premium experiences.

4. Valuation Snapshot

While the firms’ fundamentals remain solid, Goldman’s research acknowledges that valuation premiums have stretched higher. However, the investment committee argues that the high-growth trajectory justifies a modest valuation multiple. For instance:

• Unity trades at a 29x forward revenue multiple—well above the industry average of ~18x—yet the firm expects a 5‑year CAGR of 22% in ARR, which would justify the premium.
• Roblox sits at a 31x forward revenue multiple; Goldman believes the DAU and developer ecosystem will underpin a 4‑year CAGR of ~20% in top‑line growth.
• Nvidia trades at ~30x forward EPS, but with the AI and gaming demand surge, a 10‑year upside of 30–40% is forecasted.

Goldman notes that while the valuation is high, the long‑term growth prospects outweigh the short‑term risk premium. The research team also cautions investors to monitor macro‑economic factors—particularly inflation and interest rate hikes—that could compress valuations.

5. How the List Was Compiled

Goldman’s methodology is transparent. The research team evaluates companies against a “growth + moat” framework:

• Growth: Revenue CAGR, gross‑margin expansion, and scalability of recurring revenue.
• Moat: Brand strength, network effects, and defensibility against competitors.
• Catalysts: Upcoming product launches, regulatory changes, and macro‑economic tailwinds.

The firm also incorporates sentiment analysis from retail and institutional investors, leveraging big‑data tools to gauge the broader market’s pulse.

6. Market Reaction and Analyst Commentary

After the announcement, 247WallSt noted that both the gaming and tech stocks jumped on the back of the news. For example:

• Unity surged 7% on the day, driven by the belief that its AI tools would accelerate adoption among mid‑size studios.
• Roblox climbed 9% as traders saw the company’s user growth and new monetization features as a tailwind.

Meanwhile, analysts at S&P Global cautioned that the gaming sector is still vulnerable to macro‑economic shifts. Rising interest rates could temper consumer discretionary spending, and there is still a risk that “blockchain gaming” hype could plateau.

Goldman, however, maintains a positive stance. In an interview with Bloomberg, the research lead, Dr. Elena Morales, said: “The fundamentals of the gaming ecosystem have never been stronger. The synergy between cloud infrastructure, AI, and user engagement positions these firms for sustained growth.”

7. Looking Forward: Potential Risks

Goldman’s research team highlighted several risks that could derail the upside thesis:

• Regulatory Scrutiny: The rise of blockchain gaming has attracted attention from regulators in the U.S. and EU, potentially imposing compliance costs.
• Competitive Landscape: New entrants from the Southeast Asian and Indian markets could capture market share, especially in mobile gaming.
• Economic Slowdown: A recession or prolonged high‑rate environment could reduce consumer spending on entertainment.

They advise investors to monitor earnings reports for any signs of margin compression or a slowdown in user growth, especially for Unity and Roblox.

8. Takeaway for Investors

Goldman Sachs’ expansion of its December conviction list underscores the firm’s belief that the convergence of gaming, cloud computing, and AI will continue to drive unprecedented growth. While the valuations may be premium, the combination of robust fundamentals, industry tailwinds, and strong growth catalysts offers a compelling investment case for both long‑term holders and active traders.

Investors looking to tap into this narrative should consider:

1. Diversifying across the gaming ecosystem: Including both platform providers (Unity, Roblox) and content creators (EA, Activision Blizzard).
2. Balancing with complementary tech names: Such as AWS, Nvidia, and Microsoft for the underlying infrastructure.
3. Monitoring macro‑economic signals: Interest rates and consumer spending trends, which could have a disproportionate impact on discretionary sectors like gaming.

In a world where digital entertainment continues to evolve at a breakneck pace, Goldman Sachs’ latest conviction list may serve as a useful compass for navigating the next wave of high‑growth opportunities.