BofA Securities has reiterated its 'Buy' rating for Tencent Holdings, establishing a target price of HKD 780. In light of heightened depreciation concerns, the firm has adjusted its non-IFRS net profit projections downward by 2% to 6% for the period spanning 2026 to 2028. Tencent's swift advancements in model capabilities and the accumulation of computing power are poised to be pivotal in reshaping its long-term competitive dynamics. Consequently, BofA Securities has revised its capital expenditure estimates for the fiscal years 2026 and 2027 to RMB 210 billion and RMB 260 billion, respectively. It anticipates that the quarterly financial strain from computing power investments will reach its zenith between the second and third quarters. Looking ahead, Tencent Cloud's revenue is projected to experience further acceleration in the latter half of this year and into the next. Meanwhile, depreciation expenses are expected to surge notably in the upcoming quarters. Furthermore, the launch of Hunyuan 4 is anticipated within the next three months, and WeChat's AI assistant (Xiaowei) is slated for a comprehensive rollout as early as the fourth quarter of this year.