--- title: "Daiwa: Visibility of monetization for Chinese tech stocks in AI has improved, with Tencent Holdings as the top choice" type: "News" locale: "en" url: "https://longbridge.com/en/news/289153810.md" description: "Daiwa released a research report, believing that the monetization visibility of Chinese tech stocks in AI has improved. The firm prefers Tencent Holdings Limited, NetEase, Baidu, Bilibili, and Alibaba. The report points out that there has been substantial AI revenue conversion in areas such as cloud computing, advertising, and AI-native applications, with market focus shifting towards usage-based monetization. It is expected that the progress of Tencent's WeChat AI Agent and Alibaba's AI Cloud advancement in the second half of the year will be important milestones, and the spin-off listing of AI may reshape the valuation landscape" datetime: "2026-06-09T07:45:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289153810.md) - [en](https://longbridge.com/en/news/289153810.md) - [zh-HK](https://longbridge.com/zh-HK/news/289153810.md) --- # Daiwa: Visibility of monetization for Chinese tech stocks in AI has improved, with Tencent Holdings as the top choice According to the Zhitong Finance APP, Daiwa has released a research report stating that all Chinese internet stocks covered by the bank have announced their performance for the March quarter. The bank's latest recommendation ranking is as follows: Tencent Holdings Limited (00700), NetEase-S (09999), Baidu Group-SW (09888), Bilibili-W (09626), and Alibaba-W (09988). The report indicates that the first quarter results show substantial AI revenue conversion in multiple areas such as cloud computing, advertising, and AI-native applications. Alibaba and Baidu's AI cloud businesses are accelerating growth, Tencent's AI-driven advertising technology continues to enhance advertising effectiveness, and Kuaishou's Keling AI demonstrates strong revenue momentum, indicating that market focus is shifting from model capabilities to monetization based on usage. Ecosystems and cloud businesses remain the clearest channels for AI monetization at present. The bank expects important milestones in the second half of the year, including progress on Tencent's WeChat AI Agent, continued advancement of Alibaba's AI cloud and MaaS monetization, and broader adoption of AI workflows in enterprises. Token consumption, advertising conversion rates, and enterprise workflow execution will become more important indicators of AI commercialization than model releases. Additionally, the bank notes that the spinoff of AI businesses may reshape the valuation landscape. Kuaishou's Keling AI and Baidu's Kunlun chip show that the AI infrastructure/model layer and application layer are becoming more clearly separated. As AI assets gain more independent valuations, some internet companies may have revaluation potential, especially those with significantly improved visibility of AI revenues. The report states that the upward profit potential will be concentrated in companies with existing monetization engines. NetEase stands out for its structural profit margin expansion and clear game pipeline in the second half of the year; while Meituan-W (03690) has upward potential due to faster-than-expected improvements in the unit economics of its delivery business. 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