According to CNBC, Goldman Sachs has updated its global conviction list for November, identifying five stocks with over 70% upside potential. The bank’s “Conviction List – Directors’ Cut” added European names including Danish logistics firm DSV, Italian electrical cable company Prysmian, and UK hydrogen firm Ceres Power, while removing Atlas Copco, Repsol, and UCB. In APAC, additions included Taiwanese manufacturer Hon Hai and Korean insurer Samsung F&M, with removals spanning Chinese sportswear company Anta and Japanese retailer Ryohin Keikaku. The top upside opportunities include Korean game publisher Krafton and Swiss HR firm Adecco Group (both 92% upside), Ceres Power (79% upside), German online retailer Zalando (77% upside), and Chinese AI chip developer Horizon Robotics (74% upside). This refresh reveals where Goldman sees the most compelling risk-reward profiles heading into 2025.
The Quiet Revolution in Investment Themes
Goldman’s selections represent more than just individual stock picks—they signal a broader sector rotation that’s gaining momentum. The inclusion of Ceres Power alongside established names like Prysmian indicates that green energy infrastructure is moving from speculative bet to mainstream investment. What’s particularly telling is the geographic distribution: European industrial and technology names feature prominently while traditional Asian consumer plays are being rotated out. This suggests Goldman’s analysts see stronger growth potential in business-to-business technology and industrial transformation than in consumer discretionary spending across developed Asian markets. The removal of companies like Anta Sports and Asics in favor of Horizon Robotics and PTC Industries reveals a pivot from consumption to production, from retail to advanced manufacturing.
The Unexpected Synergy Between Gaming and Green Energy
Krafton’s 92% projected upside alongside Ceres Power’s 79% potential creates a fascinating narrative about parallel technological revolutions. While these sectors appear unrelated, they both represent high-margin business models with global scalability. Krafton’s success with PlayerUnknown’s Battlegrounds demonstrates the profitability of hit-driven entertainment platforms, while Ceres Power’s partnership with Shell shows how traditional energy giants are betting big on hydrogen infrastructure. Both companies operate in winner-take-most markets where technological leadership creates durable competitive advantages. The common thread is intellectual property—whether it’s game engines or fuel cell technology, Goldman appears to be favoring companies whose value derives from proprietary platforms rather than commoditized products.
Europe’s Quiet Technology Renaissance
The strong European representation in Goldman’s list—from Zalando’s e-commerce platform to Ceres Power’s hydrogen technology—challenges the narrative that Europe has missed the tech revolution. What we’re witnessing is Europe playing to its historical strengths in engineering and industrial technology rather than trying to replicate Silicon Valley’s software-centric model. Zalando’s strategic acquisition of About You creates a pan-European e-commerce champion with scale to compete against Amazon, while Ceres Power’s fuel cell technology leverages Europe’s strong automotive and energy engineering expertise. This European tech resurgence is particularly evident in Germany, where Horizon Robotics recently established its European headquarters, partnering with Volkswagen’s software arm Cariad and ZF Group.
The AI Hardware Boom Beyond Hype Cycles
Horizon Robotics’ inclusion is particularly significant given its 144% year-to-date surge already. Goldman’s continued bullishness suggests they see substantial runway beyond the current AI euphoria. Unlike many AI software companies, Horizon develops specialized chips for autonomous vehicles—a market with concrete deployment timelines and established automotive partners. The company’s work with BYD and Volkswagen represents real-world applications rather than speculative technology. This pick indicates Goldman believes the most valuable AI opportunities lie in specialized hardware rather than generalized AI platforms, particularly in verticals like automotive where the path to revenue is clearer and regulatory frameworks are established.
The Hidden Risks in High-Conviction Plays
While the projected upsides are compelling, these picks carry significant sector-specific risks that investors should weigh carefully. Krafton faces the perpetual challenge of gaming hit cycles—what happens when PUBG’s popularity eventually wanes? Ceres Power’s hydrogen technology depends on infrastructure build-outs and policy support that could face delays. Zalando must prove it can integrate About You successfully while fending off Amazon’s relentless expansion. Most notably, Horizon Robotics operates in the geopolitically sensitive semiconductor sector amid ongoing US-China technology tensions. The concentration in European names also exposes these picks to regional economic weakness and energy price volatility. These aren’t diversified plays—they’re concentrated bets on specific technological and market transformations succeeding.
What This Means for Portfolio Construction
For investors considering these high-conviction ideas, the key insight is thematic allocation rather than stock picking. Goldman’s list points toward several powerful trends: the digitization of European commerce, the practical application of AI in automotive, the infrastructure build-out for hydrogen economy, and the continued monetization of gaming platforms. Rather than chasing individual names, investors might consider building exposure to these themes through diversified approaches. The dramatic removals from the list—particularly in Asian consumer sectors—are equally telling, suggesting Goldman sees structural challenges in discretionary spending across developed Asian markets. This represents a significant shift from the previous decade’s emerging market consumption growth narrative toward a more nuanced understanding of where global growth will originate in the coming years.
