0209 GMT - Tencent's AI investment should position it well for future growth, Barclays analysts say in a research note. While AI has tangibly benefited Tencent's ads and games sectors, it's a discovery process for both the company and users in other areas, the analysts say. In response to the recent Nvidia H20 export restriction, management noted during the earnings call that it's capable of pursing its AI strategies using previously acquired chips. The analysts think that "management recognized the fluid situation with regards to chip procurement [and] therefore has been allocating these chips to areas where immediate tangible returns can be achieved." Management believes that as its computing requirements gradually move to inferencing, they can use non-Nvidia chips to fulfill the growing needs. Shares are up 0.2% at HK$522.00. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

May 14, 2025 22:09 ET (02:09 GMT)

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