Tencent stock price with Tencent stock price hovering

With Tencent stock price hovering around HKD 318, institutional investors are accumulating positions ahead of expected policy easing in China’s tech sector. Derivative markets indicate rising call option activity, signaling bullish sentiment for the short term. Let’s now take a closer look at whether Huawei’s plans pose a serious competitive threat to Nvidia (assuming the latter will be able to sell its AI chips in China). Well, the upcoming Ascend 950 delivers only about 6% of the performance of Nvidia’s next-generation VR200 superchip. Of course, I doubt anyone expects Nvidia to be allowed to sell its most powerful offerings in China, but even if it produces a version with only half—or even a third—of the VR200’s performance, it would still far outpace the Ascend 950. Editor's Note: This analysis was originally published as a stock note by Morningstar Equity Research. Tencent stock price edged up to HKD 322 on optimism around new monetization tools for WeChat Channels. Industry research points to a 15% YoY increase in digital ad spend, which could translate into upside earnings surprises in the next report.