---
title: "UBS: Reiterates Tencent Holdings as the industry favorite, optimistic about the potential of AI intelligences"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/277439427.md"
description: "UBS released a research report stating that Tencent Holdings' stock price has fallen approximately 13% year-to-date, underperforming the Hang Seng Tech Index and the Hang Seng Index during the same period. This is believed to be due to investors' concerns about the potential industry disruption brought by AI and Tencent possibly lagging in the AI competition. UBS still reaffirms Tencent as the industry’s preferred stock, giving it a \"Buy\" rating with a target price of HKD 780. However, UBS also noted that most of the downside risks have already been reflected in the stock price performance and pointed out that Tencent's recent developments in AI and gaming are positive, suggesting that investors may be overlooking these factors. Regarding AI competition, the market is concerned about Tencent's Yuanbao lagging in download volume and weekly active users during the Lunar New Year period, but UBS indicated that the key to success for enterprises in the AI field lies in their ability to integrate high-quality models, a strong user base, and extensive data. With WeChat having 1.4 billion users covering diverse application scenarios such as social, business, and content, along with an active mini-program ecosystem, UBS believes Tencent's unique advantages are difficult to replicate and remains optimistic about Tencent's strong potential in the AI intelligence domain"
datetime: "2026-03-02T09:36:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/277439427.md)
  - [en](https://longbridge.com/en/news/277439427.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/277439427.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277439427.md) | [繁體中文](https://longbridge.com/zh-HK/news/277439427.md)


# UBS: Reiterates Tencent Holdings as the industry favorite, optimistic about the potential of AI intelligences

According to the Zhitong Finance APP, UBS has released a research report stating that Tencent Holdings (00700) has fallen approximately 13% year-to-date, underperforming the Hang Seng Tech Index and the Hang Seng Index during the same period. This is believed to be due to investor concerns about the potential industry disruption brought by AI and Tencent possibly lagging in the AI competition. UBS still reaffirms Tencent as a top pick in the industry, maintaining a "Buy" rating with a target price of HKD 780.

However, UBS also noted that most of the downside risks have already been reflected in the stock price performance and pointed out that Tencent's recent developments in AI and gaming are positive, suggesting that investors may be overlooking these factors. In terms of AI competition, the market is concerned about Tencent's lagging performance in downloads and weekly active users for its Yuanbao during the Lunar New Year period. However, UBS indicated that the key to success in the AI field for companies lies in their ability to integrate high-quality models, a strong user base, and extensive data. With WeChat having 1.4 billion users covering diverse application scenarios such as social, business, and content, along with an active mini-program ecosystem, UBS believes Tencent's unique advantages are difficult to replicate and remains optimistic about Tencent's strong potential in the AI agent field

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- [Tencent Holdings Limited (TCTZF.US)](https://longbridge.com/en/quote/TCTZF.US.md)
- [TENCENT (00700.HK)](https://longbridge.com/en/quote/00700.HK.md)
- [Tencent Holdings Limited (TCEHY.US)](https://longbridge.com/en/quote/TCEHY.US.md)
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