Lyon: Tencent Holdings (00700) and Alibaba-W (09988) are preferred for the rise of Agentic AI in China

The Zhitong Finance App learned that Lyon released a research report saying that Agentic AI is moving from an experiment to a next-generation infrastructure layer. The Chinese AI model is rapidly narrowing the performance gap and seizing global share through cost efficiency; the bank gave Tencent Holdings (00700) a “Highly Confident Outperform the Market” rating, Alibaba-W (09988) a “Outperform the Market” rating, and also gave Zhi Spectrum (02513) a “Outperform the Market” rating.

According to the report, enterprises are shifting from simply pursuing model capabilities to balancing performance, cost, and deployment flexibility. Multi-model adoption will become a future trend, and it is expected that hyperscale cloud operators at the chip, model, computing power and application layers can seize maximum opportunities.

Lyon expects the surge in AI applications to ignite the next global cloud supercycle. The global public cloud market will double to 2.3 trillion US dollars by 2028, bringing annual revenue opportunities of more than 1 trillion US dollars. In the market, they are more optimistic about full-stack cloud and AI vendors. Because they combine their own chips, models, cloud infrastructure, development tools and applications, they can form a strong moat. It is expected that fields such as software, video streaming, in-store services, recruitment and online travel are weak, and Tencent and Ali are preferred.