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Barclays research report stated that regardless of the macroeconomic conditions, Tencent remains one of the best-positioned Chinese technology companies. Barclays analysts attributed Tencent's better-than-expected second quarter profit margin to the effective use of artificial intelligence (AI) to improve productivity and reduce costs. Barclays believes that the short-term opportunities for benefiting from AI will not appear in the consumer application space but rather in the internal use of enterprises. Tencent's decision to allocate more expenses to invest in the company's AI native applications is a positive move, but monetizing these applications through a ChatGPT-style subscription model will be challenging. Barclays maintains an overweight rating on Tencent, with a target price of $77.00 for the company's American Depositary Receipts (ADRs).