Tencent's share price surged by 10% following the testing of its in-house WeChat AI assistant. The regulatory submission process for this product might commence as soon as June, paving the way for restricted external testing and a phased launch. At its current share price, Tencent is trading at a forward P/E ratio of 13.9x for 2026, presenting an appealing valuation. Morgan Stanley maintains its 'Overweight' recommendation for Tencent, with an unchanged target price of HKD 650. During the Q1 earnings conference call, Tencent's management regarded AI assistants as a groundbreaking application scenario and underscored the advantages of platforms such as WeChat, albeit without specifying a clear timeline. If the reports hold true, the WeChat AI assistant could be launched earlier than the previously forecasted Q4. Tencent is anticipated to ramp up its investments in computing power, with supply conditions expected to enhance in the latter half of the year. Although the revenue generation model remains ambiguous, the introduction of competitive consumer-oriented AI assistants carries substantial strategic significance for Tencent, aiding in closing the gap with competitors like ByteDance and Alibaba-W.