Investor concerns about heavy AI spending are weighing on Tencent, dragging down Naspers and Prosus shares. Despite solid fundamentals, valuations have fallen amid uncertainty over AI returns. Mergence CIO Peter Takaendesa notes profit-taking due to this uncertainty, but argues Tencent remains well placed, saying it is very well positioned to leverage its 1.4 billion users to scale AI products and improve efficiency over time.
The Magnificent Seven: looking beyond the hype
With the build-out of data centres not losing steam, the AI trade continues to command investors’ attention. But beneath the