TENCENT(HK:00700) Feng Huang Wang·2025-10-13 05:16Core Viewpoint - Goldman Sachs reports that Tencent's stock price has increased by 56% year-to-date, with a focus on AI applications and capital expenditure outlook in the upcoming Q3 earnings [1] Group 1: Financial Performance - Goldman Sachs forecasts a 13% year-on-year increase in revenue and an 18% rise in earnings per share, driven by high-margin revenue sources and operational leverage [1] Group 2: Capital Expenditure and Growth Projections - The firm has raised its capital expenditure forecast for Tencent from 350 billion to 350 billion yuan for the years 2023 to 2027, along with an upward revision of cloud revenue growth expectations [1] Group 3: AI Integration and Business Impact - Goldman Sachs believes that Tencent's AI capabilities enhance all its business lines, benefiting from its unique WeChat ecosystem and global gaming assets [1] Group 4: Investment Rating and Price Target - The investment rating for Tencent is maintained at "Buy," with the base case price target increased from 701 HKD to 770 HKD, and a bullish scenario price target set at 846 HKD [1]