Tencent

Tencent released a preview of its image-generation model Hy Image 3.5, which briefly pushed the stock noticeably higher in Hong Kong. The company said the model is competitive with products from ByteDance and Google but did not provide external benchmarks. For investors, the key question remains whether Tencent’s AI products can be monetized within the WeChat ecosystem and whether the heavy investments in sustained growth can translate into profits and margins. » More on finanzen.net

Tencent shares fall after Q2 results as investors worry about sharply increased AI spending that burdens cash flow and return expectations. Mizuho cut the price target from HK$610 to HK$560 and reduced valuation multiples, but kept the rating at neutral. Despite robust advertising and cloud growth and progress on its own AI models, record capex of RMB 52.8 billion and negative free cash flows weigh on the valuation and raise questions about monetizing the AI investments. » More on de.investing.com

Chipmaker Changxin Technology (CXMT) rose after its IPO to become China’s most valuable publicly listed firm, reaching a market capitalization of about €455 billion and surpassing Tencent. Tencent remains far ahead in revenue (first half: 401 billion yuan versus CXMT’s forecast of 110–120 billion yuan). CXMT’s high valuation is based on expectations of AI-driven demand for DRAM memory, supply shortages and rising prices; CXMT is China’s largest maker of such chips and ranks fourth worldwide by capacity. State funds are among the major shareholders, which aligns with Beijing’s goal of strengthening domestic semiconductor production. » More on de.investing.com