0716 GMT - Tencent's capital expenditure could rise to 260 billion yuan in 2027 from 210 billion yuan this year, say Macquarie analysts in a research note. Tencent's multilayer AI portfolio has delivered measurable gains in model capabilities and user adoption. However, the company's pre-payments for GPUs and components to support its AI initiatives will remain a near-term cost drag, they say.Macquarie expects slower games growth and tepid advertising and payment revenue in 3Q amid softer macro conditions. The bank maintains a neutral rating on Tencent and trims its target price to 435.00 Hong Kong dollars from HK$440.00. Shares last traded at HK$420.60.