Woofun AI reports that Goldman Sachs has maintained its 12-month price target of HK$700 for Tencent, implying approximately 61.7% upside from the current level of HK$433. This valuation stance follows the testing launch of 'Xiao Wei,' an internal AI assistant within WeChat, which signals the super app's strategic entry into the intelligent assistant sector.

While market participants express concern over potential duplicate resource allocation and incremental reasoning costs that could erode adjusted operating profit by 5% to 17% in Q4 2026, Goldman Sachs views the current valuation as overly pessimistic regarding AI progress. The bank highlights Xiao Wei's full-chain operational capabilities via voice or text commands as a critical milestone. Key drivers for valuation repair include Tencent's transition from a follower to a proactive player in basic models, accelerated advertising growth, and Tencent Cloud's consolidation as a top-three provider in China.