0418 GMT - Tencent's current low valuation should be temporary, Bernstein analysts say in a note. The Chinese technology company's depressed stock valuation reflects a collection of concerns, including a lack of new blockbuster game and higher expenses related to artificial-intelligence investments, they say. Markets are worried that AI roll-out means it will likely need to incur significant computing costs, while consumer AI monetization remains minimal, the analysts say. However, monetization growth would follow despite a time lag, they say. In terms of its game business, Bernstein still expects Tencent to outperform the industry. Shares are 3.6% higher at HK$478.20. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 20, 2026 00:18 ET (04:18 GMT)

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