Goldman Sachs: Encouraged by the progress of Tencent Holdings' (00700) AI strategy, reiterates "buy" rating.

According to the Zhigong Financial APP, Goldman Sachs released a research report stating that James Mitchell, Chief Strategic Officer of Tencent Holdings (00700), participated in the Asia Communacopia+Technology conference hosted by Goldman Sachs, focusing on the group's AI strategy. The bank pointed out that Tencent's Hybrid 3.0 model, after a comprehensive reconstruction of the basic model strategy, has become one of the most competitive models in the same category in China. Tencent has rebuilt a large language model team, redesigned pre-training and reinforcement learning stacks, expanded and cleaned up datasets, and shifted evaluation from public benchmarks to general intelligence. Hy3 is seen as one of the better models in its category, laying the foundation for launching larger and smarter model iterations in the next six to nine months. The bank maintains a "buy" rating on Tencent with a 12-month target price of 700 Hong Kong dollars.