Tencent Stock: AI Push Drives Remarkable Rally

Tencent shares continued their impressive upward trajectory, gaining 1.3% to reach €60.75 in Frankfurt trading on Wednesday, with intraday peaks touching €61.39. This performance extends a substantial recovery that has seen the Chinese technology giant's stock surge nearly 50% from its 52-week low of €31.17 recorded in March 2024. The rally appears largely fueled by China's intensified focus on artificial intelligence technologies, with the government announcing comprehensive support measures during the National People's Congress. These policy initiatives, coupled with Tencent's own advancements in AI capabilities, have significantly bolstered investor confidence. The company's latest quarterly results further strengthen its market position, with earnings per share climbing to 6.27 HKD for the quarter ending September 30, 2024-a substantial increase from 4.13 HKD in the same period last year. Revenue also grew by a healthy 8.98% to 181.93 billion HKD.

Broader Tech Rally Boosts Outlook

Tencent's gains coincide with a broader technology sector rally across Asian markets, with the Hang Seng Tech Index rising over 3% while Tencent shares in Hong Kong jumped 4.7%. This momentum is partially attributed to China's new fiscal stimulus measures designed to strengthen domestic consumption and technological innovation. Analysts remain optimistic about Tencent's growth trajectory, projecting earnings of 22.84 CNY per share for fiscal year 2024. Investors are now eagerly anticipating the company's fourth-quarter results, scheduled for release on March 19, 2025, with dividend expectations set at 4.12 CNY for the current year, up from 3.40 HKD distributed in 2023.