---
title: "Citigroup: Tencent's management is optimistic about AI progress, domestic chip supply is expected to improve"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286849018.md"
description: "Citi released a research report stating that after Tencent's first-quarter performance, it held an investor video conference with its management. The management is optimistic about the company's AI progress and is confident in the improvement of the Hunyuan 3.0 model's performance. As domestic chip foundry capacity gradually slows down, it is expected that domestic chip deliveries will accelerate in the second half of the year, driving an increase in capital expenditures. Citi maintains a \"Buy\" rating on Tencent, with a target price of HKD 763. The report cites management as saying that the Hunyuan 3.0 model has made progress in areas such as code writing and agentic AI, and has been deeply integrated with internal products. At the same time, benefiting from long-term strategic cooperation with global storage suppliers and an increase in domestic storage chip shipments, Tencent is believed to be in a favorable position regarding computing power and memory constraints"
datetime: "2026-05-19T03:35:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286849018.md)
  - [en](https://longbridge.com/en/news/286849018.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286849018.md)
---

# Citigroup: Tencent's management is optimistic about AI progress, domestic chip supply is expected to improve

According to the Zhitong Finance APP, Citigroup released a research report stating that after Tencent Holdings (00700) announced its first-quarter results, it held an investor video conference with its management. The management is optimistic about the company's AI progress and is confident in the performance improvement of the Hunyuan 3.0 model. As domestic chip foundry capacity gradually slows down, it is expected that domestic chip deliveries will accelerate in the second half of the year, driving an increase in capital expenditures. Citigroup maintains a "Buy" rating on Tencent, with a target price of HKD 763.

The report cites management as saying that the Hunyuan 3.0 model has made progress in areas such as code writing and agentic AI, and has been deeply integrated with internal products. At the same time, benefiting from long-term strategic cooperation with global storage suppliers and an increase in domestic storage chip shipments, Tencent is believed to be in a favorable position regarding computing power and memory constraints

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