Tencent Q4 Earnings Surge: Can Its AI Expansion Keep the Momentum?

Tencent Q4 Earnings Surge: Will the Rally Continue?

On Wednesday, Tencent Holdings revealed fourth-quarter earnings that exceeded forecasts, driven by a sharp increase in gaming revenue. Tencent stock has had a great start to the year, and the corporation also praised the expansion of its AI division.

The messaging and gaming firm based in China announced adjusted earnings of 5.91 yuan per share on revenue of $23.9 billion (172.4 billion yuan). With 168.1 billion yuan in revenue, analysts predicted Tencent would report earnings of 5.66 yuan per share, according to FactSet. While adjusted earnings per share rose 33%, local currency sales jumped 11% year over year.

AI Battle Heats Up in China: Tencent, Baidu, and Alibaba Compete for Supremacy

Tencent is vying to create the best AI model in China with other IT behemoths and upstarts like DeepSeek. In recent weeks, Baidu (BIDU) and Alibaba (BABA) have both unveiled updated AI agents and new models. Though it is still in its limited preview stage, Manus AI, an AI chatbot tool created by a Chinese business, is also gaining interest in the IT community. Tencent promised in its earnings news release on Wednesday to continue its AI effort.

As the capabilities and benefits of AI become clearer, we have stepped up our AI investments to meet our internal business needs, train foundation models and support surging demand for inference we are experiencing from our users. We intend to further increase our capital expenditures in 2025 and believe these AI investments will generate good economic returns and value.

the company

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