Tencent President Comments on AI Spending Growth: Multiple New Applications Show Strong Performance, Significant Upside Already Visible

Deep News08-12 21:11

During the second-quarter 2026 earnings call on August 12, Tencent President Martin Lau addressed the company's increased capital expenditure for the quarter. He stated that Tencent is indeed making large-scale investments in computing power, and has already observed clear upside potential for returns, with several new applications performing well.

Furthermore, Lau noted that computing power allocated to cloud-based leasing services could also generate substantial revenue growth, thereby improving the return on capital expenditure. For some previously placed computing power orders, if sold, they could yield profit margins exceeding 30% above the purchase price from just a few months ago.

Lau explained, "By following the sequence of first using the computing power to build our own models, then developing applications, and finally leasing the computing power externally, we can build a highly scalable native AI business. This will bring very significant profits."

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment