Tencent's 2Q Profit Growth Likely Dented by AI Investment
Dow Jones
Jul 17, 2025
0251 GMT - Tencent's 2Q profit growth was likely dented by its AI investment, Nomura analysts say in a research note. Tencent's online gaming revenue likely rose 15% on year in 2Q thanks to the resilient performance of its legacy titles like "Honor of Kings" and some recently released titles like "Delta Force," the analysts say. Its online ads revenue likely grew 18%, driven by video account ads, they say. Despite higher AI spending, Nomura thinks Tencent's adjusted operating margin should be able to sustain its expansion streak. Nomura maintains a buy rating on Tencent with its target price unchanged at HK$670.00.
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