Barclays Research reports that regardless of the macro situation, Tencent is still one of the best-performing Chinese technology companies. Barclays analysts said they attributed Tencent's better-than-expected second-quarter profit margins to the effective use of artificial intelligence to increase productivity and reduce costs. Barclays believes that in the short term, opportunities to benefit from AI will not occur in the consumer application field, but in the internal use of enterprises. Tencent's spending more on investing in the company's AI-native apps is a positive move, but monetizing these apps through a ChatGPT-style subscription model would be challenging. Barclays maintained its overrated rating on Tencent, and the company's target price for American Depositary Receipts remained unchanged at $77.00.

Barclays Research reports that regardless of the macro situation, Tencent is still one of the best-performing Chinese technology companies. Barclays analysts said they attributed Tencent's better-than-expected second-quarter profit margins to the effective use of artificial intelligence to increase productivity and reduce costs. Barclays believes that in the short term, opportunities to benefit from AI will not occur in the consumer application field, but in the internal use of enterprises. Tencent's spending more on investing in the company's AI-native apps is a positive move, but monetizing these apps through a ChatGPT-style subscription model would be challenging. Barclays maintained its overrated rating on Tencent, and the company's target price for American Depositary Receipts remained unchanged at $77.00.