Tencent Reports Q1 Revenue of $28.9B Below Estimates, Ramps AI Spending

According to Reuters, Tencent reported first-quarter revenue of 196.5 billion yuan ($28.9 billion) and net profit of 58.1 billion yuan ($8.56 billion), both below analyst expectations. The Chinese tech company increased AI investment amid intensifying competition and U.S. chip export restrictions.

Gaming and advertising drove the quarter's growth, with domestic game sales up 6%, international game revenue rising 13%, and online advertising climbing 20% to 38.2 billion yuan ($5.63 billion). Capital spending rose to 31.9 billion yuan ($4.7 billion) from 27.5 billion yuan ($4.05 billion) a year earlier.