TENCENT(HK:00700) Hu Xiu·2025-05-27 00:38Group 1 - Tencent's stock performance has been flat since the release of its Q1 report, with a slight increase but no new highs, and the future stock price increase depends on the tangible revenue contribution from AI [1][2] - The management emphasized AI's enhancement of advertising business in the Q1 report but did not quantify specific revenue or disclose any AI-related operational data [1] - Tencent's AI strategy is seen as a turning point with the integration of Deepseek, which is viewed positively [3] Group 2 - According to Similarweb data, as of April 2025, Tencent's AI application "Yuanbao" had a monthly active user count of 28.52 million, ranking it below competitors like Grok and Meta [30][31] - Yuanbao's monthly active user growth rate was 58.0%, significantly higher than competitors, benefiting from its integration with WeChat [13][15] - Tencent's AI applications are positioned in the domestic first tier, competing closely with Alibaba and ByteDance, with each company having its strengths [22][28] Group 3 - Tencent's AI applications include Yuanbao for C-end users and AI search integrated into WeChat, which serves as an entry point for AI traffic [23][28] - The monthly average usage frequency of Tencent Docs is 12.6 times, leading among AI applications, while Yuanbao's usage frequency is lower [24] - Tencent's AI strategy heavily relies on Deepseek, which poses a significant challenge for the company [32][34] Group 4 - Tencent's gaming model, which is a visual model aimed at generating game assets, is seen as a potential standout in the B-end market [33] - The company lacks an operating system and hardware, which limits its competitive edge in the AI space compared to global players like Microsoft and Google [34][35] - The dominance of smartphone manufacturers in AI applications poses another challenge for Tencent, as they are unlikely to relinquish control over AI capabilities [35]