Morgan Stanley raises Tencent's target price to 750 yuan, expects AI agents to have strong long-term potential

AASTOCKS
2025.11.17 06:49

JP Morgan earlier published a research report indicating that Tencent (00700.HK)(TCEHY.US) will have robust performance in the third quarter of 2025, revealing its long-term vision regarding agentic AI in the social generation. JP Morgan believes that WeChat, under Tencent, is in a favorable position to capture in-app transaction traffic and that generative AI will significantly enhance this potential.

JP Morgan expects that the integration of generative AI into WeChat could generate incremental revenue of RMB 69 billion to 426 billion by 2030, which would lead to an adjustment of approximately 10% to 56% in JP Morgan's earnings forecast for Tencent in 2030.

JP Morgan believes that the current shortage of artificial intelligence chip supply will not pose a structural obstacle to this long-term investment opportunity, maintaining an "overweight" rating on the stock and raising the target price from HKD 685 to HKD 750. (hc/)

Tencent Financial Report, Understand it at a Glance!
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