Citi said Tencent’s plan to more than double AI investment in 2026 could slow
profit growth relative to revenue in the near term, but sees this as temporary.
Strong earnings from its core business should help offset higher spending and
keep growth on track. The firm maintains Tencent as a top China AI pick, citing
its track record of late entry and leadership. The rollout of Hunyuan 3.0 and a
superapp AI agent could act as near-term catalysts. Citi reiterates a buy rating
and lifts its target price to HK$787 from HK$783.
