Woofun AI reports that Daiwa has reduced Tencent Holdings' target price from HK$700 to HK$670 while maintaining a "Buy" rating. The bank adjusted its 2026 AI capital expenditure forecast upward from 108 billion yuan to approximately 181 billion yuan, reflecting enhanced investment commitments and improved chip supply conditions.

Daiwa decreased earnings per share projections for 2026 to 2028 by 1% to 6% to account for profitability pressures from higher depreciation. Although gaming growth faces headwinds from a high base, market share momentum remains robust. The increased AI spending is expected to drive cloud business expansion and monetization, with benefits anticipated from the second half of 2026.