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)
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