Tencent Q2 Deep-Dive: Why Tencent Is Still A Buy Beyond The Macro Shadows

Summary Tencent delivered 11% YoY revenue growth in Q2, with robust operating profits despite elevated AI Capex. I see a 43% upside for TCEHY, underpinned by dominant gaming, resilient marketing services, and accelerating AI-driven business services. Macro headwinds—US yields, foreign capital outflows, and a soft Chinese economy—are pressuring valuation, but core operations remain strong. AI initiatives, especially WorkBuddy and AIM+, are unlocking new enterprise value and driving operational leverage across Tencent’s ecosystem. nayuki/iStock Editorial via Getty Images Tencent ( TCEHY ) handed in a decent answer sheet in the Q2 print: total revenue was $29.26 billion, rising by 11% yearly. Operating profits are still solid despite a 10% drag down by AI Capex: $10.8 billion with 9% YoY. Businesses benefit from AI, presenting This article was written by Yudan Tian 32 Followers Follow I am a young finance professional with an academic and practical background in corporate finance, audit, and valuation. After completing my Master’s degree in finance in the UK, I gained experience analyzing financial statements and business fundamentals across various industries. With my roots and professional experience in China, I bring a localized perspective to analyzing global market trends, particularly within the technology and artificial intelligence sectors. My current research focuses on the commercialization of large language models, digital platforms, and tech-driven businesses in both Chinese and international markets. For me, writing on Seeking Alpha is a dedicated practice to transition from a consumer of market news into an active, independent thinker. I view this platform as an opportunity to refine my analytical framework, structure my investment language, and gradually build my own voice. I highly value constructive feedback from the community and look forward to engaging in meaningful dialogue with fellow investors to challenge and improve my perspectives over time. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.