Tencent's Valuation Repair Path Hinges on AI Development -- Market Talk

Dow Jones11:24

0323 GMT - Tencent's valuation repair path will hinge on the progression of its AI narrative, Goldman Sachs analysts say in a research note. "Despite Tencent's near-term profit growth pressure from AI investment ramp-up, we note early signs of progress of Tencent's AI strategy," the analysts write. GS raises its capex forecasts for Tencent to 151 billion yuan this year and 165 billion yuan next year. How Tencent secures sufficient domestic AI equipment supply over the coming years also remains critical to its AI development, the analysts say. They reckon Tencent's unique Weixin ecosystem and global gaming assets will enable the company to deliver compounding earnings through macro cycles. GS maintains its Tencent target price at HK$700.00. Shares are last at HK$464.00.(sherry.qin@wsj.com)

(END) Dow Jones Newswires

May 13, 2026 23:24 ET (03:24 GMT)

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GS raises its capex forecasts for Tencent to 151 billion yuan this year and 165 billion yuan next year. How Tencent secures sufficient domestic AI equipment supply over the coming years also remains critical to its AI development, the analysts say. They reckon Tencent's unique Weixin ecosystem and global gaming assets will enable the company to deliver compounding earnings through macro cycles. GS maintains its Tencent target price at HK$700.00. 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