--- title: "UBS: Tencent's AI investments pave the way for long-term growth, reiterates \"Buy\" rating" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/280112441.md" description: "UBS reiterated its \"Buy\" rating on Tencent, believing that its AI investments will drive long-term growth. Tencent achieves high returns on investment in its advertising and gaming businesses through AI, with an expected price-to-earnings ratio of 14 times. Management pointed out that AI applications are evolving, and Tencent has unique advantages. The Hongyuan 3.0 model is set to launch in mid-April, expected to enhance user engagement and create monetization opportunities. Cloud business revenue growth is accelerating, with plans to transition to external cloud customers" datetime: "2026-03-23T06:58:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280112441.md) - [en](https://longbridge.com/en/news/280112441.md) - [zh-HK](https://longbridge.com/zh-HK/news/280112441.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/280112441.md) | [English](https://longbridge.com/en/news/280112441.md) # UBS: Tencent's AI investments pave the way for long-term growth, reiterates "Buy" rating According to Zhitong Finance APP, UBS released a research report stating that it recently met with the management of Tencent Holdings (00700) to discuss mainly the development of AI, including agent-based AI and monetization models. They believe Tencent is best positioned to capture long-term growth opportunities in this area. Currently, Tencent's forecasted price-to-earnings ratio is 14 times, and they believe its core business performance and the long-term upward potential of AI are underestimated. They reaffirm Tencent as a key call and top pick, maintaining a "buy" rating and a target price of HKD 780. The report cites management as saying that AI is gradually evolving from communication and reasoning to more action-oriented applications, leveraging Tencent's advantages due to its WeChat and QQ as natural interfaces between humans and AI, cross-platform capabilities, and expertise in end products and security software. There are currently three bottlenecks for WeChat agents: limited model capabilities, data privacy and security concerns, and economic model challenges (high reasoning costs but difficulties in subscription monetization). The Hongyuan 3.0 model is expected to be launched in mid-April and will be the most significant advancement in the company's past model iterations. Regarding AI monetization, management takes a comprehensive view, positioning the Hongyuan foundational model as an enabling layer for broader ecosystem growth rather than focusing on direct monetization of the model itself. As WeChat agents are expected to enhance user engagement within the ecosystem, monetization opportunities will arise from payments, transactions (commissions from small shops), and advertising revenue. Tencent has already achieved high returns on investment in its advertising and gaming businesses through AI. In terms of cloud business, Tencent's revenue growth accelerated in the fourth quarter of last year, with an adjusted operating profit of RMB 5 billion expected in 2025 (profit margin of about 8% to 10%). With improvements in chip supply (especially in the second half of the year), management plans to gradually shift the business towards external cloud customers. Regarding the gaming business, management believes AI is an enabler rather than a disruptor, as Tencent's gaming portfolio is primarily focused on multiplayer PvP games, which are harder to replace than single-player games ### 相關股票 - [SPDR S&P Software (XSW.US)](https://longbridge.com/zh-HK/quote/XSW.US.md) - [iShares Expanded Tech Software Sector ETF (IGV.US)](https://longbridge.com/zh-HK/quote/IGV.US.md) - [Tencent (TCEHY.US)](https://longbridge.com/zh-HK/quote/TCEHY.US.md) - [Krne Csi China Internet (KWEB.US)](https://longbridge.com/zh-HK/quote/KWEB.US.md) - [VanEck Video Gaming and eSport ETF (ESPO.US)](https://longbridge.com/zh-HK/quote/ESPO.US.md) - [Tencent Holdings Limited (TCTZF.US)](https://longbridge.com/zh-HK/quote/TCTZF.US.md) - [iShares MSCI China (MCHI.US)](https://longbridge.com/zh-HK/quote/MCHI.US.md) - [iShares China Large Cap (FXI.US)](https://longbridge.com/zh-HK/quote/FXI.US.md) - [Emerging Markets Internet ETF (EMQQ.US)](https://longbridge.com/zh-HK/quote/EMQQ.US.md) - [Global X Video Games & Esports ETF (HERO.US)](https://longbridge.com/zh-HK/quote/HERO.US.md) - [Wedbush ETFMG Video Game Tech ETF (GAMR.US)](https://longbridge.com/zh-HK/quote/GAMR.US.md) - [Yinhua MSCI China A ETF (512380.CN)](https://longbridge.com/zh-HK/quote/512380.CN.md) - [TENCENT (00700.HK)](https://longbridge.com/zh-HK/quote/00700.HK.md) - [Global X Cloud Computing ETF (CLOU.US)](https://longbridge.com/zh-HK/quote/CLOU.US.md) - [Direxion FTSE China Bull 3X (YINN.US)](https://longbridge.com/zh-HK/quote/YINN.US.md) ## 相關資訊與研究 - [Tencent integrates WeChat with OpenClaw AI agent amid China tech battle](https://longbridge.com/zh-HK/news/280046413.md) - [Tencent (TCEHY) Brings AI Agents to WeChat's 1 Billion Users as Alibaba and Baidu Race Ahead](https://longbridge.com/zh-HK/news/280061085.md) - [Tencent to Double AI Investment, President Says After Chinese Tech Giant Delivers Solid Earnings Growth](https://longbridge.com/zh-HK/news/279717961.md) - [Tencent’s WeChat launches ClawBot plugin supporting OpenClaw framework](https://longbridge.com/zh-HK/news/280136319.md) - [Morgan Stanley Keeps Their Buy Rating on Tencent Holdings (TCTZF)](https://longbridge.com/zh-HK/news/279892254.md)