Analyst Bernstein said in a report that Tencent's current undervaluation should be temporary. They said the Chinese tech company's sluggish stock valuation reflects a range of concerns, including a lack of new blockbuster games and higher fees associated with AI investments. Bernstein's analysts said that the market is concerned that the introduction of AI means that the company may have to bear huge computational costs, while the monetization of consumer AI is still minimal. However, they said that despite the time lag, monetization growth will follow. As far as its gaming business is concerned, Bernstein still expects Tencent to outperform its peers.

Analyst Bernstein said in a report that Tencent's current undervaluation should be temporary. They said the Chinese tech company's sluggish stock valuation reflects a range of concerns, including a lack of new blockbuster games and higher fees associated with AI investments. Bernstein's analysts said that the market is concerned that the introduction of AI means that the company may have to bear huge computational costs, while the monetization of consumer AI is still minimal. However, they said that despite the time lag, monetization growth will follow. As far as its gaming business is concerned, Bernstein still expects Tencent to outperform its peers.