Tencent's Large User Network Could Help Preserve Its Market Position in AI World -- Market Talk

Dow Jones05-14

0720 GMT - Tencent's 1.4 billion-user network and proprietary data should help preserve its market position in an AI-driven world, even without a leading AI model of its own, Morningstar analyst Ivan Su writes in a note. He says the company's latest earnings call showed management is focusing on embedding AI across its platforms rather than competing directly in the AI-model race. Su highlights that Tencent's key advantage lies in its strong network effects, and layering AI features on top of its applications should retain its strengths. "A marginally better model won't pull users away from entrenched messaging and payment ecosystems," he adds. Morningstar maintains its fair-value estimate of HK$800.00 and views shares as significantly undervalued, as the market has overstated the competition from ByteDance. Shares are last at HK$461.00. (jason.chau@wsj.com)

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May 14, 2026 03:20 ET (07:20 GMT)

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