700 Tencent said to study deal for $ 15 billion game developer Nexon. Nexon has invested in Web3 projects including MapleStory Universe, Oasys, and CCP Games.
700 Tencent posted a record quarter, with revenue up 13% Y/Y to 180B yuan ($25B)—its fastest growth since 2021—driven by a 24% surge in gaming and a 20% rise in AI-driven ad revenue. Flagship games like Honor of Kings, Peacekeeper Elite, and DnF Mobile underpinned the performance. WeChat’s 1.4B MAUs continued to support monetization across video, search, and mini-programs. Net income rose 14% to $6.6B, slightly below expectations due to elevated AI-related spending.
Capex nearly doubled to $3.8B as Tencent scaled its Hunyuan foundation model, Yuanbao chatbot, and GPU reserves amid U.S. chip export controls. With integrations like DeepSeek and a growing AI ecosystem, Tencent is positioning itself as a core AI force in China. Analysts highlighted its high-margin ad business, strong chip inventory, and expanding operating leverage. Despite macro and trade headwinds, shares are up ~25% YTD, reinforcing Tencent’s leadership in China’s AI-driven tech resurgence.