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<Research>BofAS Expects TENCENT WeChat AI Agent to Enter Full Public Beta as Early as 4Q, Positive on 3 Catalyst Timelines
Recommend 36 Positive 49 Negative 20 |
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TENCENT (00700.HK) is reportedly close to launching an embedded AI Agent within WeChat, BofA Securities said in its report. The company is testing prototypes of AI-supported features and may initiate the required compliance procedures as early as this month, first rolling out to a small group of external users before gradually expanding. However, the official public launch date has yet to be confirmed. The launch of WeChat AI Agent should help drive a stock re-rating, with the narrative shifting toward TENCENT's capability in executing AI applications, thereby easing investors’ excessive focus on standalone AI chatbot app DAU. A public launch of WeChat AI Agent would require substantial computing power, a boon to TENCENT's capex outlook for 2026-28, and is expected to result in higher token costs. Nevertheless, TENCENT's core businesses remain well positioned, with advertising and gaming businesses still under-monetized. BofA Securities remains positive on TENCENT's clear re-rating path: more upgrades to the Hunyuan model family in the next 3-6 months; acceleration in capex and cloud revenue growth in the next 6-12 months; and a gradual rollout of WeChat AI Agent over the next 9-18 months. The TP is HKD780. The Buy rating is maintained, with TENCENT remaining its top pick in China's internet sector. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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