Understanding the Market | Tencent Holdings rose nearly 2%, institutions expect the company to adopt a moderate growth capital expenditure plan in the future, with the gaming business remaining core
Complete. Here is the key summaryTencent Holdings rose nearly 2%, as of the time of writing, up 1.72%, reported at HKD 474.4, with a transaction volume of HKD 11.08 billion. In terms of news, BOC International released a research report stating that it is still too early to discuss the scale of capital expenditures after 2027. It is expected that after 2027, Tencent will adopt a more moderate capital expenditure plan compared to this year, unless C-end AI applications prove capable of generating substantial revenue and a good profit model, or if the core social ecosystem and main business are shaken by AI competitors. The firm believes that Tencent will prioritize high-end computing resources for the Hunyuan large model, while the AI assistant "Xiao Wei" will not be a key project in the short term due to potential computing power consumption, compliance factors, and the lack of effective commercialization methods. BOC International stated that Tencent has been continuously increasing its investment in artificial intelligence in recent years, predicting that the company's capital cash expenditure will reach RMB 160 billion to 180 billion in 2026 (depending on supply chain dynamics), but believes that Tencent will maintain a cautious investment pace to ensure business resilience. The firm believes that Tencent's core business, especially gaming, will benefit from a timeless game portfolio and a rich game pipeline, and will continue to maintain resilience in the coming quarters
According to Zhitong Finance APP, Tencent Holdings (00700) rose nearly 2%, as of the time of publication, it increased by 1.72%, reaching HKD 474.4, with a transaction volume of HKD 11.08 billion.
In terms of news, BOC International released a research report stating that it is still too early to discuss the scale of capital expenditure after 2027. It is expected that after 2027, Tencent will adopt a more moderate capital expenditure plan compared to this year, unless C-end AI applications prove capable of generating substantial revenue and a good profit model, or if the core social ecosystem and main business are shaken by AI competitors. The firm believes that Tencent will prioritize high-end computing resources for the mixed Yuan model, while the AI assistant "Xiao Wei" will not be a key project in the short term due to potential computing power consumption, compliance factors, and the lack of effective commercialization methods.
BOC International stated that Tencent has been continuously increasing its investment in artificial intelligence in recent years. The firm predicts that the company's capital cash expenditure will reach RMB 160 billion to 180 billion by 2026 (depending on supply chain dynamics), but believes that Tencent will maintain a cautious investment pace to ensure business resilience. The firm believes that Tencent's core business, especially gaming, will benefit from a timeless game portfolio and a rich game pipeline, and will continue to maintain resilience in the coming quarters