Shares of Tencent Holdings Ltd. surged by 6.6% in Hong Kong on Monday, extending the company’s recent strong performance, thanks to its strategic integration of DeepSeek’s artificial intelligence (AI) technology into its widely-used WeChat app. The move comes as Tencent capitalizes on the buzz surrounding DeepSeek’s AI advancements, which have garnered attention across China, with multiple service providers and government agencies jumping on board.
Tencent’s decision to integrate DeepSeek’s powerful AI chatbot into WeChat signals the company’s commitment to staying at the forefront of AI innovation. This announcement contributed to a boost in investor confidence, building on the strong momentum generated by Tencent’s successful game releases over the past year, which have helped the company’s stock rise by 67% in 2024.
DeepSeek’s release of the R1 reasoning chatbot on January 20 has significantly impacted global markets, causing a dramatic shift in AI investment strategies. In the wake of DeepSeek’s groundbreaking debut, more than $1 trillion in market value has been wiped off US-listed companies investing heavily in securing the most advanced hardware for AI development. Meanwhile, the development has sparked a $1.3 trillion rally in China’s stock market as investors bet on further breakthroughs in AI technology.
This alignment with DeepSeek further strengthens Tencent’s position as a leader in both gaming and AI-driven services, providing the company with a valuable opportunity to expand its footprint in the rapidly-growing AI sector, which many view as the future of technological innovation. The market reaction reflects optimism about Tencent’s long-term prospects as it continues to integrate cutting-edge AI technology into its popular platforms like WeChat.
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