Tencent Stock Surges to Three-Year High as DeepSeek AI Rolls Out on WeChat

China’s tech sector sees renewed investor confidence with AI integration

Tencent Holdings Ltd. has reached its highest stock price since 2021, propelled by the debut of DeepSeek’s artificial intelligence technology on the WeChat platform. This integration signals Tencent’s commitment to AI-driven advancements, aligning with a broader industry shift towards AI adoption among major Chinese tech firms.

The Shenzhen-based technology giant announced that DeepSeek’s AI model is now incorporated into WeChat’s search functionality, enabling users to access more intelligent and precise search results. This strategic move has reinforced investor confidence, further supported by Tencent’s robust gaming portfolio, which has already driven a 70% surge in its share price over the past year.

Investor enthusiasm extends beyond Tencent, with China’s AI and tech sectors experiencing a wave of optimism. The market rally coincides with reports suggesting a potential meeting between Chinese President Xi Jinping and Alibaba’s co-founder Jack Ma. Such an encounter would symbolize strengthened governmental support for China’s private sector, fostering a favorable investment climate.

Analysts from Goldman Sachs predict that the widespread adoption of artificial intelligence could increase Chinese corporate earnings by approximately 2.5% per year over the next decade. However, they emphasize the necessity of robust economic policies to address macroeconomic challenges and sustain long-term growth in China’s stock market.

DeepSeek’s AI technology has already demonstrated its disruptive potential. Since launching its R1 reasoning chatbot on January 20, the AI firm has significantly influenced global financial markets. The emergence of DeepSeek has not only fueled a $1.3 trillion rally in Chinese equities but has also resulted in a massive valuation decline for U.S. companies investing in high-performance AI hardware.

Despite Tencent’s stock price surge, not all Chinese tech firms are benefiting equally. Baidu Inc., which is also integrating DeepSeek’s AI into its search engine, saw its shares drop by more than 5% in Hong Kong trading. This disparity highlights the uneven distribution of investor confidence within China’s AI landscape.

Tencent’s strategic integration of DeepSeek into WeChat search underscores the company’s forward-thinking approach, positioning itself at the forefront of AI innovation. As artificial intelligence continues reshaping global industries, Tencent’s proactive AI adoption strengthens its role as a leader in China’s rapidly evolving tech ecosystem.