Bank of China International published a report stating that investors are increasingly paying attention to Tencent's earnings per share forecast and AI investment returns. The bank predicts that Tencent's capital and cash expenditure will reach 160 to 180 billion yuan in 2026, but believes that the company will maintain a prudent pace of investment to maintain business flexibility. The bank pointed out that it is still too early to talk about capital expenditure levels after 2027. It is expected that after 2027, Tencent will adopt a capital expenditure plan with a moderate increase compared to this year, unless C-side AI applications prove to generate large-scale revenue and a good profit model, or the core social ecosystem and main business are manually shaken by AI competition. The bank believes that Tencent will currently prioritize high-end computing power resources on the mixed-element model. “Xiaowei” will not focus on advancing projects in the short term due to potential computing power consumption, compliance factors, and lack of effective commercialization methods. The bank believes that Tencent's core business, especially games, will continue to be resilient in the next few quarters, and will maintain its “buy” rating and target price of HK$655 unchanged, thanks to the Evergreen Gaming portfolio and rich game pipeline.

Bank of China International published a report stating that investors are increasingly paying attention to Tencent's earnings per share forecast and AI investment returns. The bank predicts that Tencent's capital and cash expenditure will reach 160 to 180 billion yuan in 2026, but believes that the company will maintain a prudent pace of investment to maintain business flexibility. The bank pointed out that it is still too early to talk about capital expenditure levels after 2027. It is expected that after 2027, Tencent will adopt a capital expenditure plan with a moderate increase compared to this year, unless C-side AI applications prove to generate large-scale revenue and a good profit model, or the core social ecosystem and main business are manually shaken by AI competition. The bank believes that Tencent will currently prioritize high-end computing power resources on the mixed-element model. “Xiaowei” will not focus on advancing projects in the short term due to potential computing power consumption, compliance factors, and lack of effective commercialization methods. The bank believes that Tencent's core business, especially games, will continue to be resilient in the next few quarters, and will maintain its “buy” rating and target price of HK$655 unchanged, thanks to the Evergreen Gaming portfolio and rich game pipeline.