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Goldman Sachs Expands December Conviction List with Gaming and Technology Powerhouses

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  Published in Stocks and Investing on Monday, December 8th 2025 at 12:27 GMT by 24/7 Wall St.

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Goldman Sachs Expands December Conviction List with Gaming and Technology Powerhouses

Goldman Sachs has just updated its December “Conviction List,” the prestigious compilation of the investment bank’s most bullish picks for the year. In a move that underscores the firm’s growing faith in digital entertainment and silicon‑based growth, the bank has added a slate of high‑profile gaming and technology stocks that it believes are poised for significant upside. The update arrives amid a broader industry narrative that sees tech and gaming firms outpacing traditional sectors, thanks in part to resilient consumer demand, shifting content consumption habits, and breakthroughs in cloud and hardware technologies.

A Shift Toward Digital Entertainment

The gaming sector has been a “red‑hot” theme for Goldman Sachs’ analysts, who note that revenue growth in the space has accelerated from the mid‑2020s to a projected 30‑plus percent compound annual growth rate (CAGR) over the next five years. In its article, the bank references the rapid expansion of e‑sports, the proliferation of mobile titles, and the commoditization of game streaming—an arena where Nvidia’s GPUs, Microsoft’s Azure cloud, and Sony’s PlayStation network converge. The new additions include:

• Activision Blizzard (ATVI) – whose “Call of Duty” franchise continues to deliver blockbuster sales, and whose upcoming “World of Warcraft” revamp promises a resurgence in subscriber revenue.
• Electronic Arts (EA) – driven by the massive success of “FIFA” and “Battlefield,” and the launch of EA Play’s subscription model that expands cross‑platform monetization.
• Take‑Two Interactive (TTWO) – buoyed by the popularity of “Grand Theft Auto V,” and the strategic push into mobile titles via its 2K brand.

Goldman’s analysts highlight that these firms benefit from a virtuous cycle: larger player bases lead to more in‑game purchases, and increased revenue allows for deeper investment in high‑quality content that fuels further growth.

Tech Titans and Semiconductor Surge

In tandem with the gaming focus, the Conviction List now places strong emphasis on the semiconductor sector, where supply‑chain pressures and innovation cycles are accelerating. Notable tech picks include:

• Nvidia (NVDA) – a global leader in GPU manufacturing, positioned to benefit from continued demand for AI training, high‑performance computing, and the next wave of gaming hardware.
• Advanced Micro Devices (AMD) – whose Ryzen processors and EPYC server chips have carved a sizable share in the CPU market, especially in data‑center and high‑performance computing.
• Microsoft (MSFT) – a pillar of the tech ecosystem, with its Azure cloud platform expanding alongside Office 365’s subscription base.

Goldman Sachs also keeps an eye on Apple (AAPL), Alphabet (GOOGL), and Meta (META), citing robust growth in ad revenue, augmented reality, and the company’s strategic focus on metaverse initiatives.

Methodology Behind the Picks

The “Conviction List” is curated by a dedicated research team that applies a blend of fundamental analysis and macro‑economic modeling. Goldman’s analysts stress that they look for companies with:

1. Sustainable Earnings Growth – Consistent increases in operating margins and net income.
2. Competitive Moats – Strong intellectual property, network effects, or brand loyalty.
3. Strategic Investments – Commitments to R&D and capital expenditures that position a firm for future demand.

To arrive at these selections, the bank cross‑references earnings projections, industry data, and peer benchmarks. In the article, an analyst cites the 2024 earnings forecast as a key driver for the gaming sector’s upside, noting that the forecast aligns with a broader consensus that gaming revenue will rise by double digits this year.

Risks and Caveats

Goldman acknowledges a host of risks that could temper the optimistic outlook. These include:

• Regulatory Scrutiny – Antitrust investigations into major tech firms could impact their growth trajectories.
• Supply Chain Constraints – Semiconductor shortages may delay product launches or elevate manufacturing costs.
• Competitive Landscape – Rapid innovation can erode a company’s moat, especially in gaming where new entrants can disrupt with novel monetization models.

The article points readers to a supplemental piece on “Gaming Industry Growth” for a deeper dive into how consumer spending patterns are shifting and what that means for long‑term valuations.

Implications for Investors

For portfolio managers and individual investors, the updated Conviction List offers a roadmap for exposure to the next wave of technology and entertainment growth. By adding these high‑conviction names, Goldman Sachs signals confidence in the sector’s ability to deliver earnings that surpass broader market expectations. The list also serves as a barometer for how institutional players are positioning themselves ahead of the fiscal year’s end, potentially setting the tone for mid‑year trading strategies.

Bottom Line

Goldman Sachs’ December Conviction List now stands as a testament to the bank’s belief that digital entertainment—especially gaming—and cutting‑edge technology will continue to outpace traditional industries. With robust earnings forecasts, strategic capital allocation, and an eye on the future of cloud, AI, and streaming, the added stocks present a compelling case for investors looking to capitalize on the evolving tech landscape. As the market digests this update, stakeholders should monitor regulatory developments, supply‑chain dynamics, and competitive pressures that could influence the trajectory of these high‑growth firms.