Tencent's Cloud Revenue Growth Could Accelerate in 2026 -- Market Talk

Dow Jones03-23

0310 GMT - Tencent's cloud revenue growth could accelerate in 2026 on more aggressive AI investment, Nomura analysts say in a note. Tencent's cloud revenue has lagged behind rivals such as Alibaba and Bytedance due to underinvestment in GPUs to fulfill ever-rising demand from clients, they say. Nomura estimates that Tencent's cloud revenue could grow 20% in 2026, up from estimate growth of 16% in 2025. "In view of the current robust demand for AI cloud services, we are not concerned that Tencent's deeper involvement in the AI cloud market would lead to irrational competition." Nomura maintains a buy call on Tencent but lowers its target price to HK$727.00 from HK$775.00 due to temporary margin pressure. Shares are last at HK$500.50. (sherry.qin@wsj.com)

 

(END) Dow Jones Newswires

March 22, 2026 23:10 ET (03:10 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment