Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter of 2024 surged 90 percent as the firm accelerates a push into artificial intelligence (AI). Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter of 2024 surged 90% as the firm accelerates a push into artificial intelligence (AI). Tencent Holdings is poised for “long-term growth” from its aggressive spending on artificial intelligence (AI) as China’s most valuable tech giant aligns its future with DeepSeek and in-house models, according to analysts. A consistent theme among these analysts is that they have high expectations for Tencent’s artificial intelligence (AI) development. Daiwa said Tencent will see long-term growth fueled by AI, while Citi expects AI to improve the company’s consumer-facing products.
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Profit reached US$7.1 billion for the quarter, while full-year profit rose to US$26.8 billion.
Similarly, like the DeepSeek and AI enthusiasm of today, investors were also excited about Chinese technology breakthroughs in 2015, with Alibaba’s landmark initial public offering coming at the end of 2014. Tencent delivered robust fourth-quarter earnings—revenue rose 11% year avatrade review over year and adjusted operating profit grew 21%. It provided 2025 capital expenditure guidance of about CNY 90 billion (USD 12.5 billion).
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- Turning to Wall Street, the analysts’ consensus rating for Tencent is Strong Buy based on seven Buy ratings over the last three months.
Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.
Both of these beat Wall Street’s estimate of 78 cents per share and revenue of $23.22 billion. On the positive side, China’s central bank might have felt comfortable holding rates today because China’s economy seems to be picking up a bit. Recent retail sales and industrial output readings in the country showed an improvement in growth, and yesterday, Tencent reported earnings that showed accelerating revenue and earnings growth relative to the prior year. Yesterday, analysts at Bank of America cautioned that a correction could be coming for Chinese stocks. The analysts noted that the recent rally bears similarities to the early 2015 rally in Chinese stocks, as the country attempted to stimulate its way to more consumer-oriented spending and away from manufacturing and industrial exports.
However, share buybacks for 2025 were reduced by about 30% compared with 2024. Chinese technology giant Tencent Holdings posted on Wednesday a 11% rise in fourth-quarter revenue, driven by growth in its gaming business. Chinese technology giant Tencent said on Wednesday it would boost capital expenditure in 2025, as it strengthens artificial intelligence development and infrastructure. The across-the-board move indicates that the declines had to do with Chinese stocks broadly and not individual stock news.
With the prospect of higher U.S. tariffs on Chinese goods ramping up, people have been reluctant to spend. Tencent Holdings has a market cap or net worth of 4.69 trillion as of March 20, 2025. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro – Your Social Investment Network. Its registered office and its principal place of business is at Office 207 and 208, 15th Floor Floor, Al Sarab Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates (“UAE”). With innovative investment tools and a collaborative trading community, eToro empowers millions of users in over 100 countries to trade and invest in a simple and transparent way.
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Capital investment in the fourth quarter nearly quadrupled year on year to 36.6 billion yuan (US$5.1 billion), driven by purchases of graphics processing units “for inference needs”, the executive said, referring to how generative AI systems “think”. That being said, the resumption of growth could stall if China’s central bank remains too restrictive, or if the government’s proposed stimulus measures fall short of what is necessary. Given all the uncertainty around the final policy, as well as the ever-changing Best solar stocks 2025 tariff policy in the U.S., it’s no wonder investors are booking profits today after a strong run. That may have disappointed some Chinese investors, who might have decided to take profits on the news. A combination of expected stimulus, the DeepSeek AI model breakthrough in January, and lower valuations than U.S. counterparts has caused a big surge in Chinese stocks to date.
The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China. Sign-up to receive the latest news and ratings for Tencent and its competitors with MarketBeat’s FREE daily newsletter. Select to analyze similar companies using key performance metrics; select up to 4 stocks.
Even with today’s sell-off, Alibaba, Tencent, and Futu Holdings are up 69%, 31%, and 43%, respectively, on the year. The big rally in Chinese stocks since last summer, and especially since the beginning of 2025, has largely been due to new stimulus measures. Since June 16, 2004, Tencent Holdings’s market cap has increased from 6.97B to 4.69T, an increase of 67,182.23%. The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation.
- The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.
- Since June 16, 2004, Tencent Holdings’s market cap has increased from 6.97B to 4.69T, an increase of 67,182.23%.
- Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro – Your Social Investment Network.
- Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally.
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Kaiyuan Securities analysts Fang Guangzhao and Tian Peng wrote that AI is “expected to continue to refresh the company’s core business and drive long-term growth”. “We believe AI monetisation will go beyond the cloud to cover a wide range of scenarios, especially via Tencent’s existing ad business and capitalisation of its Weixin ecosystem to realise the potential from mini shops and search,” the researchers wrote, using the Chinese name for WeChat, the country’s largest social network. HSBC analysts Charlene Liu and Ritchie Sun wrote in a research note that Tencent’s capital expenditure could reach 90 billion yuan this year, up from 77 billion yuan in 2024, as it steps up AI investment to grow its core businesses. Alibaba recently unveiled a plan to spend 380 billion best forex system yuan on AI infrastructure over the next three years. The tech giant, which at US$650 billion is China’s most valuable company, is proving to be a formidable player in China’s AI market.
Tencent Stock (TCEHY) Gets Price Target Increases on Strong AI Potential
Most likely, the downdraft was caused by disappointment over today’s action — or rather inaction — by China’s central bank. In addition, a Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking. Turning to Wall Street, the analysts’ consensus rating for Tencent is Strong Buy based on seven Buy ratings over the last three months. With that comes an average price target of HK$586.18, a high of HK$646, and a low of HK$525. Yahoo Finance host Brad Smith tracks several of this morning’s biggest stock moves in this Market Minute, including Boeing’s (BA) upbeat outlook, Tencent’s (TCEHY, 0700.HK) surging fourth quarter profits, and cryptocurrency XRP’s (XRP-USD) moves higher after the US Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple Labs. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance’s Market Minute.
Earnings Snapshot: Tencent Q4 tops estimates; plans to raise dividend and initiates buyback of HKD80B shares
Its consumer-facing Yuanbao app saw the number of users increase 20-fold to become the third most popular app in China from February to March, rivalling ByteDance’s Doubao and Alibaba Group Holding’s Qwen. Market capitalization, also called net worth, is the total value of all of a company’s outstanding shares. It is calculated by multiplying the stock price by the number of shares outstanding. More updates for Tencent stock included Citi analysts bumping their price target up from HK$648 to HK$681, while Daiwa analysts raised theirs from HK$565 to HK$670. Tencent president Martin Lau Chi-ping said on Wednesday that the company has boosted spending on AI infrastructure.
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Wondering what the next stocks will be that hit it big, with solid fundamentals? Enter your email address to see which stocks MarketBeat analysts could become the next blockbuster growth stocks. Chinese tech giant Tencent is likely to report a 62 per cent rise in fourth-quarter profit later on Wednesday.