Yamato: Reiterates positive ratings on the gaming industry, with Tencent Holdings, Bilibili-W, and NetEase-S as top choices.

Nomura Research Institute has released a report stating that artificial intelligence has improved efficiency, scalability, and operational capability in the gaming industry, but core creative creation is still led by humans. The firm believes that AI will expand content supply, but attention and profitability may further concentrate on top platforms. Nomura still views key project reserves as catalysts for recent re-evaluations. Given Tencent Holdings, Bilibili, and NetEase's comprehensive capabilities, foresight, strong operational capabilities, and robust project reserves in the era of AI disruption, the firm prefers these three stocks. However, the firm also highlights some key risks, including new game delays or underperformance; and the emergence of new disruptive tools or traffic acquisition tools at a speed faster than expected. The firm has a "buy" rating for Tencent with a target price of HK$517; a "buy" rating for Bilibili Hong Kong and U.S. stocks with target prices of HK$199.2 and $24.95, respectively; and a "buy" rating for NetEase Hong Kong and U.S. stocks with target prices of HK$186.6 and $115.87, respectively.