Tencent exceeded expectations in the second quarter with a profit increase of 17% to 55.63 billion yuan ($7.75 billion). Revenue climbed by 15% to a record 184.50 billion yuan, marking the third consecutive quarter of double-digit growth. Analysts had expected a slowdown due to high investments in artificial intelligence (AI).

Particularly the core business of gaming proved to be a growth driver: Revenue from domestic titles like Honor of Kings increased by 17%, supported by high deferral effects from the previous quarter. The international gaming segment grew by 35%. According to corporate management, AI was specifically used to accelerate content production and optimize marketing campaigns.

The advertising business was also convincing: Marketing revenue increased by 20%, supported by an improved Advertising Foundation Model. This allowed Tencent to offset the sharply increased capital expenditures of 2.9 billion yuan in the quarter – more than twice as much as the previous year, but within the forecasts for 2025.

In addition to organic growth, the company relies on technological differentiation. President Martin Lau confirmed that AI is already visibly contributing to increased efficiency. Nvidia's recent resumption of H20 chip sales opens up additional opportunities for Tencent, even though Beijing's security review poses new risks.

The stocks in Hong Kong already rose by 4.7% to a four-year high ahead of the figures – a sign that the market sees Tencent as a key beneficiary of the global AI investment boom.