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<Research>Nomura: TENCENT Solid Core Biz Support AI Investment; Rating Buy
Nomura published a report covering TENCENT (00700.HK), of which core businesses, including advertising and gaming, remained solid and continued to generate strong cash flow, laying...
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<Research>Nomura: TENCENT Solid Core Biz Support AI Investment; Rating Buy
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Nomura published a report covering TENCENT (00700.HK)  -7.200 (-1.578%)    Short selling $1.32B; Ratio 9.930%   , of which core businesses, including advertising and gaming, remained solid and continued to generate strong cash flow, laying a solid foundation for amplified investment in AI R&D by the company.

In 1Q26, TENCENT's non-IFRS operating profit grew 9% YoY to RMB75.6 billion. Excluding investment in new AI products, operating profit growth would have reached 17%, with operating margin expanding by 3 ppts to 43%.

Related NewsCICC: TENCENT (00700.HK) 1Q Non-IFRS Net Profit In Line; Active and Controllable AI Investment
TENCENT made initial progress in AI, as its foundational model team was fully restructured over the past six months and launched the Hunyuan (Hy) 3 model, which demonstrated strong capabilities in mathematics, coding and logic. The model has now been deployed across 131 internal products.

Nomura maintained its Buy rating on TENCENT with a TP of HKD727.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-18 16:25.)

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