Tencent Has Strong Potential to Further Benefit From AI Tools -- Market Talk

Dow Jones2025-08-14

0349 GMT - There is significant potential for Tencent to further leverage its suite of AI tools to enhance engagement and monetization on WeChat, Morningstar equity analyst Ivan Su writes in a note. With multiple AI levers in place, Tencent is well-positioned to generate strong returns on its investments in graphics processing units, Su says. Tencent's revenue strength was broad based in 2Q, and what stood out was its 20% increase in advertising revenue, which was achieved without raising ad load thanks to the company's effective use of AI, Su says. Morningstar raises advertising revenue forecasts for Tencent by an average of 6% over the next five years. The brokerage raises its fair value estimate by 13% to HK$800, showing both upward revisions to its forecasts and increased market value of the company's listed investments. Shares last at HK$593.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

August 13, 2025 23:49 ET (03:49 GMT)

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