Morgan Stanley reiterated its "Overweight" rating on Tencent and raised prices for some AI cloud services in line with industry trends

AASTOCKS
2026.04.10 02:09

Morgan Stanley published a research report stating that Tencent Holdings (00700.HK) subsidiary Tencent Cloud announced a 5% increase in its product catalog prices, effective May 9, 2026. This mainly involves products and services related to AI computing capabilities, TKE native node container products and services, as well as Elastic MapReduce (EMR) products and services. The new prices will apply to the next renewal or new purchases and will not affect products and services purchased before May 9, 2026. Tencent attributes the price increase to the surge in global AI computing demand and rising hardware supply chain costs.

The firm believes this move echoes management's comments during the Q4 2025 earnings call, indicating that Tencent Cloud currently enjoys a better pricing environment, with expectations of strong growth in external cloud service revenue in 2026 while maintaining profitability.

Morgan Stanley has given Tencent an "Overweight" rating with a target price of HKD 650

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