Tencent's AI Investment Should Propel Long-Term Structural Growth -- Market Talk

Dow Jones03-20

0457 GMT - Tencent's AI investment strategy should propel long-term structural growth for all its business units, Daiwa analysts say in a research note. Daiwa believes Tencent is best positioned within China's internet sector to benefit from the increasing adoption of AI. Tencent's AI-powered features could drive marketing services revenue up 23% on year in 1Q, the analysts say. As the tech giant allocates more chip capacity to external clients, the analysts expect fintech and business services revenue growth to accelerate to 10% on year in 1Q. Daiwa lifts its 2025-2026 Tencent earnings per share estimate by 4%-5% to reflect a better outlook. Daiwa raises the stock's target to HK$670.00 from HK$565.00 and maintains a buy call. Shares are last at HK$526.00.(sherry.qin@wsj.com)

(END) Dow Jones Newswires

March 20, 2025 00:57 ET (04:57 GMT)

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