Nikada
Tencent Holdings Limited (OTCPK:TCEHY) is set to become one of the most relevant Chinese AI players. The company has the will to achieve this objective and can leverage its AI efforts in one of the most influential digital
Tencent: Leveraging Its Extensive Digital Network Distribution To Lead AI Revolution
Summary
- Tencent is set to become a leading Chinese AI player, leveraging its extensive digital service distribution network and significant investments in AI technology.
- The company’s CAPEX investments surged to $10.7 billion, focusing on GPUs, servers, and data centers, positioning it ahead of rivals like Baidu and Alibaba.
- Tencent's vast digital ecosystem, including WeChat, gaming, and music platforms, provides a unique advantage to integrate and monetize AI functionalities across its services.
- Despite macroeconomic risks in China and competition from ByteDance, I estimate Tencent's stock value at $71 per share, recommending a buy.
Investing in high-growth opportunities across industries, employing a value investing approach that prioritizes robust business models and strategic foresight. Focusing on companies with the potential to profoundly influence the global landscape in the years aheadI primarily employ the discounted cash flow (DCF) valuation methodology, although I remain adaptable to various valuation techniques. Additionally, I leverage business model frameworks derived from institutions like Harvard Business School and other renowned universities for in-depth analysis. This approach ensures a comprehensive understanding of a company's intrinsic value and strategic positioning within its industry landscape, facilitating informed investment decisions with a focus on long-term growth potential and risk mitigation.Educational background: MBA IESE Business School, University of Navarra and chartered financial analyst with CFA Institute
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TCEHY over 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.
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