Tencent Holdings Ltd.: Core businesses robust; the race to become China’s Anthropic is on

Research evidence excerpt

Tencent Holdings Ltd.: Core businesses robust; the race to become China’s Anthropic is on

cation layer in AI – particularly when targeting enterprises, where the monetization outlook

is a lot more clear than for the consumer market. It has been widely reported that Anthropic Price Performance Exchange-Nasdaq

ARR is currently around $30bn and is expected to grow to at least $100bn by year-end. Tencent 52 Week range USD 87.68-57.91

and its major internet platform competitors in China are sparing no expense in their race to

establish a dominant position in the enterprise agentic AI space. We are at a very early stage of

the rapidly advancing industry and the competitive landscape is constantly shifting. But we are

hopeful, and in fact we expect Tencent can be one of the winners given the company’s track

record in developing new businesses (look what happened after the company launched Wechat

15 years ago) and its unparalleled reach of users. Finally, as the AI industry is moving rapidly

from the model layer to the application layer where AI agents can be model agnostic,

Source: IDC

particularly in China where most models are open sourced, Tencent, as the internet application Link to Barclays Live for interactive charting

layer powerhouse, is now much better positioned in AI than perhaps only 6 months ago.

China TechnologyWhat we liked: Robust results across all major segments; stable operating margins despite

Jiong Shao, CFAsignificant AI investments; early lead in DAU in enterprise agentic AI

+1 212 526 5562

jiong.shao@barclays.comWhat to monitor: Shifting competitive landscape in agentic AI; monetization traction of agentic

BCI, US

AI; advancement and market adoption in latest HY models

Lian Xiu (Roger) Duan

+1 212 526 4633

lianxiu.duan@barclays.com