Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>BofAS: TENCENT WeChat AI Agent May Enter Full Public Beta as Early as 4Q, Supporting Valuation Re-rating
Recommend 22 Positive 31 Negative 15 |
||||
|
||||
|
TENCENT (00700.HK) is advancing the launch of an embedded AI agent for WeChat, BofA Securities said in its report, citing media reports. The company is testing prototype features to help users complete tasks within WeChat. TENCENT reportedly aims to begin the required compliance procedures as early as this month and will roll out the feature in phases after launching it to a small group of external users, although the official public release date has not yet been confirmed. Users will be able to access the AI agents' chat interface by swiping right on the WeChat main interface and enter commands to allow the agent to automatically connect to the WeChat Mini Program ecosystem. BofA Securities believed the launch of the WeChat AI agent will support a potential valuation re-rating of the stock, shifting market narratives toward TENCENT can execute well in AI applications and reducing investor focus on ByteDance's leading independent AI chatbot app daily active users (DAUs). In addition, the public launch of the WeChat AI agent will require substantial computing power, supporting room for capex growth for TENCENT in FY2026-28. While the agent may result in higher token costs, TENCENT's core businesses are well positioned, and its advertising and gaming assets remain under-monetized. The broker expected the WeChat AI agent to expand gradually through multiple rounds of beta testing and may enter full public testing as early as 4Q26. BofA Securities sees a clear re-rating path ahead, including more upgrades to the Hunyuan large model family in the next 3-6 months, acceleration in capex and cloud revenue in the next 6-12 months, and the commercialization of the WeChat AI agent in the next 9-18 months. The broker reiterated its Buy rating on TENCENT, maintaining a TP of HKD780, and continued to name it as its top pick in the China 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
AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
