Goldman Sachs reiterated a Buy rating on Tencent, suggesting the stock's valuation has bottomed out after a 27% year-to-date decline. The bank expressed confidence in Tencent's artificial intelligence strategy, citing progress in its Hunyuan model and enterprise AI solutions. Goldman anticipates accelerated growth in Tencent's cloud and advertising revenues and the potential pilot of a WeChat AI agent in the second half of 2026.
In a move signaling internal confidence, Tencent repurchased approximately HK$500 million worth of its shares on the same day. Despite these positive company-specific developments, Tencent's stock fell 1.5% in Hong Kong. The decline occurred amid a broader sell-off in Chinese tech stocks, driven by renewed regulatory concerns after Beijing's market watchdog summoned major e-commerce platforms over issues like false advertising.