The race for dominance in China’s artificial intelligence (AI) sector has reached a fever pitch, with its tech titans deploying massive subsidies to capture the next generation of digital users.
However, amidst a sea of aggressive marketing and “AI red packet” giveaways, seasoned market observers are looking past the noise to identify long-term winners.
To that end, Rupert Mitchell says Tencent stock has a unique, intangible edge that rivals like Baidu and Alibaba may struggle to replicate: a definitive “trust advantage”.
Mitchell is the author of Blind Squirrel Macro and a former advisor on Alibaba IPO.
Why does this trust advantage matter for Tencent stock
Mitchell believes Tencent holds a key advantage over domestic AI rivals given it’s already “deeply integrated” into the daily lives of Chinese people via “WeChat”.
In a market where companies are fighting for “mind share” for their AI agents – the existing bond between users and that platform is paramount.
According to him, if you asked a Chinese netizen to delete every app except one, “it would be only WeChat that remains in all probability.”
This ubiquity creates a “trust advantage” as artificial intelligence agents transition from novelties to essential everyday assistants, Mitchell added.
When users begin incorporating AI into personal schedules, financial management, and private communications, they are more likely to lean on a platform that already serves as their primary digital home.
While rivals spend billions on temporary incentives like digital red packets, Tencent’s advantage is structural; it doesn’t need to buy a relationship it already owns.
As Rupert Mitchell put it in an interview on Monday, this trust will prove the ultimate differentiator as AI becomes “incorporated into our everyday lives.”
Should you buy Tencent stock today?
Tencent’s financial performance reinforces its position as a low beta Chinese AI stock that may be particularly attractive for conservative investors in 2026.
In its latest reported quarter, the Shenzhen-headquartered firm saw its revenue pop 15% on a year-over-year basis while non-IFRS operating profit climbed double-digits as well to RMB 72.6 billion
This was fuelled by “healthy trends” across games and marketing services, where AI-powered ad-targeting has significant improved returns on investment.
Moreover, Tencent’s AI strategy is notably measured compared to western rivals. By focusing on “agentic AI capabilities” within the Weixin ecosystem and the growth of its Yuanbao chatbot, the multinational is building a sustainable implementation story.
Additionally, with the issuance of 497 game licenses by Chinese regulators in late 2025, Tencent – the world’s largest esports company – is poised to capitalize on a more stable regulatory climate and the integration of AI into its massive gaming library.
For investors wary of the volatility typically associated with US-listed Chinese names like Alibaba (BABA), Tencent stock’s primary listing in Hong Kong offers a more stable “nexus of liquidity” as well.
https://invezz.com/news/2026/02/16/tencent-has-a-key-advantage-over-other-chinese-ai-stocks-heres-what-it-is/
