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Tencent's Strategy to Use AI Chips Internally Should Drive Concrete Returns -- Market Talk

Dow Jones
Dec 12

0923 GMT - Tencent's strategy to use AI chips for core business enhancements could drive more concrete returns, Daiwa analysts say in a research note. Tencent is prioritizing its AI chip resources for internal model training and core business enhancements, which could yield returns with higher certainty, the analysts say. Daiwa says Tencent's model strengths lie in 3-D and image generation. Ecosystem integration could be an advantage for Tencent's AI adoption as its everything app WeChat has significant potential in AI use scenarios, Daiwa says. Meanwhile, it thinks gaming could be the defining content class of the AI era by lowering costs and increasing content supply. "Tencent is in the sweet spot," Daiwa adds. Shares closed at HK$616.00. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

December 12, 2025 04:23 ET (09:23 GMT)

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