Gaming revenue

Tencent’s Q2 revenue grew 11%, driven by domestic gaming and AI-boosted advertising, but profit missed expectations. The company significantly increased capital expenditure for AI infrastructure, aiming to monetize its large user base and new AI models like Hy3. Despite this aggressive AI push and a strong gaming rebound in China, Tencent faces intense competition and has seen its stock decline. The advertising sector also showed robust growth, benefiting from AI enhancements.