Morningstar: Tencent has tremendous potential in further benefiting from the use of AI tools.

Morningstar stock analyst Ivan Su reports that Tencent has great potential in further enhancing the engagement and monetization capabilities of WeChat users using its AI tool suite. With multiple AI tools, Tencent is in a favorable position in terms of graphics processor investments, which can generate strong returns. Tencent's strong revenue in the second quarter has broad business support, with standout growth in advertising revenue of 20%, thanks to Tencent's effective use of AI without increasing advertising volume. Morningstar has raised its average forecast for Tencent's advertising revenue in the next five years by 6%. Morningstar has raised Tencent's fair value estimate by 13% to 800 Hong Kong dollars, reflecting both the upward revision of forecasts and the increase in the market value of Tencent's listed investments.