Recent financial reports from major Hong Kong-listed technology companies, including Tencent, Alibaba, and JD.com, reveal robust performance for the first quarter of 2025 or 2026. Artificial intelligence (AI) capabilities—spanning computing power, large language models, and applications—have emerged as a crucial driver of this growth.

Data shows Tencent's Q1 2026 revenue reached approximately RMB 196.458 billion, a 9% year-over-year increase. Gross profit was RMB 111.265 billion, up 11% year-over-year. During the earnings call, Tencent's management highlighted that AI models and application services are becoming a new growth engine for the company. With the continuous iteration and deep integration of its Hunyuan model series, demand for AI services is rapidly increasing both within Tencent's core products and from external clients. The company stated it achieved significant breakthroughs in new AI products in 2026 and continues to use AI to empower its core business growth. Its reorganized AI R&D team has rebuilt the AI infrastructure, developing the Hy3 preview model, which leads in performance among models of similar parameter scale. The company's efficiency AI agent solutions are showing initial results.

For the fiscal year ended March 31, 2026, Alibaba Group reported revenue of RMB 1,023.67 billion, a 3% increase year-over-year. Excluding revenue from disposed businesses like RT-Mart and Intime, revenue growth on a comparable basis would have been 11%. Net profit attributable to ordinary shareholders was RMB 105.904 billion. Alibaba Group CEO Wu Yongming stated, "Alibaba's full-stack AI technology investment has officially moved beyond the initial cultivation phase into a period of positive, scaled commercial returns. This quarter, we achieved accelerated breakthroughs across the model, cloud infrastructure, and application layers. External commercial cloud revenue growth accelerated to 40%, with AI-related revenue accounting for 30%."

Baidu showcased its leading AI commercialization strength with a better-than-expected financial report. For 2025, Baidu's total revenue reached RMB 129.1 billion, with AI business revenue hitting RMB 40 billion.

Regarding future AI capital expenditures, these tech giants have expressed strong confidence, indicating plans to significantly increase investments to capitalize on the major trend. Alibaba stated that to meet massive AI demand, future capital expenditure will exceed the originally planned RMB 380 billion. Wu Yongming revealed that compared to the scale before the large model boom in 2022, the future data center build-out represents "basically more than tenfold growth." Tencent's management provided a clear signal on AI capital expenditure: with the monthly supply of China's self-designed AI chips increasing throughout the year, capital expenditure is set to rise substantially in the second half. Q1 operational capital expenditure already surged 84% quarter-over-quarter, confirming the start of this trend.

Securities firms have commented on this trend. Industrial Securities noted that the domestic computing power chain is currently playing catch-up relative to the North American chain, with the AI rally spreading within the computing power sector. Hong Kong internet stocks, due to their inherent trading attributes linked to domestic computing power, show high positive correlation. This indicates that within the AI theme, aside from the diffusion from North American to domestic computing power, the Hang Seng Tech index is another major diffusion channel. Furthermore, from an overseas mapping perspective, cloud providers represented by Hong Kong internet giants are also expected to be a subsequent area for catch-up in the domestic AI rally.

Daiwa Capital Markets released a research report stating that against the backdrop of intensified competition in China's large language models (LLMs) and the rise of agent AI and AI super-apps, with sustained strong growth in token usage demand, enterprise AI adoption boosting cloud pricing power, increased use of AI agents, and the expansion of consumer AI assistants, the firm continues to view the AI cloud segment as the preferred sub-sector within China's internet sector.

**Related Concept Stocks:** * **TENCENT (00700)**: The company's Q1 2026 performance showed revenue of ~RMB 196.458 billion (up 9% YoY). Gross profit was RMB 111.265 billion (up 11% YoY). Profit attributable to equity holders was RMB 58.093 billion (up 21% YoY). * **BABA-W (09988)**: For fiscal year 2026, Alibaba's revenue was RMB 1.02 trillion (up 3% YoY). Excluding disposed businesses, comparable revenue growth would have been 11%. The company also announced an annual cash dividend for FY2026 totaling approximately $2.5 billion. * **JD-SW (09618)**: JD.com reported Q1 2026 revenue of RMB 315.7 billion, a 4.9% year-over-year increase. Net profit attributable to ordinary shareholders was RMB 5.1 billion. R&D expenses increased 48.6% year-over-year to RMB 6.9 billion. * **BIDU-SW (09888)**: Baidu released its Q4 and full-year 2025 results. Q4 total revenue was RMB 32.7 billion, a 5% sequential increase, primarily driven by growth in Baidu Core's new AI business. Operating profit was RMB 1.5 billion with an operating margin of 5%.