Ma said Tencent has adopted a « double-core » strategy on AI that uses both DeepSeek and its own Yuanbao models, following an approach similar to how it has dominated the video gaming industry by promoting self-developed titles and those developed by independent studios. Thus, the government and the People’s Bank of China (PCOB) have embraced more stimulus measures since last summer. As part of that, the PCOB has been lowering interest rates, with its latest 25-basis-point cut coming last October. China has been mired in a recessionary state ever since the government’s heavy-handed crackdown on tech companies and entrepreneurs, the restrictive « zero-Covid » policies, and the popping of the country’s property bubble.
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- « We believe AI monetisation will go beyond the cloud to cover a wide range of scenarios, especially via Tencent’s existing ad business and capitalisation of its Weixin ecosystem to realise the potential from mini shops and search, » the researchers wrote, using the Chinese name for WeChat, the country’s largest social network.
- HSBC analysts Charlene Liu and Ritchie Sun wrote in a research note that Tencent’s capital expenditure could reach 90 billion yuan this year, up from 77 billion yuan in 2024, as it steps up AI investment to grow its core businesses.
- Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter of 2024 surged 90% as the firm accelerates a push into artificial intelligence (AI).
- Profit reached US$7.1 billion for the quarter, while full-year profit rose to US$26.8 billion.
- Alibaba recently unveiled a plan to spend 380 billion yuan on AI infrastructure over the next three years.
Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services best forex trading app in the People’s Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.
- Both of these beat Wall Street’s estimate of 78 cents per share and revenue of $23.22 billion.
- Chinese tech giant Tencent is likely to report a 62 per cent rise in fourth-quarter profit later on Wednesday.
- Tencent’s Hong Kong-listed shares declined 3.8 per cent to HK$519.5 on Thursday.
The author or authors do not own shares in any securities mentioned in this article. Tencent on Wednesday posted a fourth-quarter beat on top and bottom line driven by a surge in gaming and advertising revenue. Shawn Yang, analyst at Arete Research discusses Tencent’s earnings and says that while Alibaba might be currently leading than its China internet company peers in the AI race, others could catch up so… Tencent reported a strong finish to 2024, with profit for the three months ended December reaching 51.3 billion yuan. Annual profit rose 68 per cent to 194 billion yuan, giving Tencent the deep pockets needed for its continued investment.
Wondering what the next stocks will be that hit it big, with solid fundamentals? Enter your email address to see which stocks MarketBeat analysts could become the next blockbuster growth stocks. Chinese tech giant Tencent is likely to report a 62 per avatrade review cent rise in fourth-quarter profit later on Wednesday.
Tencent is still a very good company despite market’s disappointment about AI-related growth: Analyst
Even with today’s sell-off, Alibaba, Tencent, and Futu Holdings are up 69%, 31%, and 43%, respectively, on the year. The big rally in Chinese stocks since last summer, and especially since the beginning of 2025, has largely been due to new stimulus measures. Since June 16, 2004, Tencent Holdings’s market cap has increased from 6.97B to 4.69T, an increase of 67,182.23%. The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation.
Company Insights: TCEHY
Tencent nearly doubled its profit as the Chinese technology giant continued to build on its gaming momentum. Tencent earnings and sales beat expectations, powered by strong growth in gaming revenue and AI progress. However, China is also trying to balance stimulus measures with not letting its currency devalue too much. Lower interest rates generally cause a debasement of a country’s currency, if a country cuts rates while peers do not. So today, the PBOC opted to leave the one-year loan prime rate at 3.1% and the five-year rate at 3.6%, instead of doing another cut.
Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter Bonus forex of 2024 surged 90 percent as the firm accelerates a push into artificial intelligence (AI). Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter of 2024 surged 90% as the firm accelerates a push into artificial intelligence (AI). Tencent Holdings is poised for « long-term growth » from its aggressive spending on artificial intelligence (AI) as China’s most valuable tech giant aligns its future with DeepSeek and in-house models, according to analysts. A consistent theme among these analysts is that they have high expectations for Tencent’s artificial intelligence (AI) development. Daiwa said Tencent will see long-term growth fueled by AI, while Citi expects AI to improve the company’s consumer-facing products.
Capital investment in the fourth quarter nearly quadrupled year on year to 36.6 billion yuan (US$5.1 billion), driven by purchases of graphics processing units « for inference needs », the executive said, referring to how generative AI systems « think ». That being said, the resumption of growth could stall if China’s central bank remains too restrictive, or if the government’s proposed stimulus measures fall short of what is necessary. Given all the uncertainty around the final policy, as well as the ever-changing tariff policy in the U.S., it’s no wonder investors are booking profits today after a strong run. That may have disappointed some Chinese investors, who might have decided to take profits on the news. A combination of expected stimulus, the DeepSeek AI model breakthrough in January, and lower valuations than U.S. counterparts has caused a big surge in Chinese stocks to date.
Barclays also highlighted the company’s AI work and said it could become a leader in the Chinese AI market despite its late entry into the space. Tencent (TCEHY) stock was a hot topic among analysts on Thursday as they updated their coverage of the Chinese tech company after its latest earnings report. As a quick reminder, the company posted earnings per share of 83 cents on revenue of $23.9 billion.
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Tencent’s Hong Kong-listed shares declined 3.8 per cent to HK$519.5 on Thursday. Beyond chatbots and models, Tencent’s Ma expected more innovation in AI agents, software driven by generative AI that automates complex tasks across platforms. Ma said that there may be a revamp of WeChat’s mini programs, the small applications that run directly within the chat app. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate. Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally.
Profit reached US$7.1 billion for the quarter, while full-year profit rose to US$26.8 billion.
Most likely, the downdraft was caused by disappointment over today’s action — or rather inaction — by China’s central bank. In addition, a Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking. Turning to Wall Street, the analysts’ consensus rating for Tencent is Strong Buy based on seven Buy ratings over the last three months. With that comes an average price target of HK$586.18, a high of HK$646, and a low of HK$525. Yahoo Finance host Brad Smith tracks several of this morning’s biggest stock moves in this Market Minute, including Boeing’s (BA) upbeat outlook, Tencent’s (TCEHY, 0700.HK) surging fourth quarter profits, and cryptocurrency XRP’s (XRP-USD) moves higher after the US Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple Labs. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance’s Market Minute.