Ed

Yes, but those AI-related numbers, they don't actually break out what the number actually is. So I'm always a little bit, eh, when they say AI-related growth, and it's definitely coming off a very small base. So I think what we should really be looking at is just cloud revenue, which is up 18%, and that's good. But I think it tells more of the story.

Yes, but those AI-related numbers, they don't actually break out what the number actually is. So I'm always a little bit, eh, when they say AI-related growth, and it's definitely coming off a very small base. So I think what we should really be looking at is just cloud revenue, which is up 18%, and that's good. But I think it tells more of the story.

I just think it's early. I think it's a very small base that we're looking at, so we shouldn't take 100% too seriously.

I just think it's early. I think it's a very small base that we're looking at, so we shouldn't take 100% too seriously.

I just think it's early. I think it's a very small base that we're looking at, so we shouldn't take 100% too seriously.

Yeah. And let's just quickly talk about Tencent. Yeah. missed on profit, but beat on revenue. The stock slipped slightly, but not massively. There's honestly not that much to say with these earnings, but the thing that jumped out to me was their CapEx number, which almost doubled, up 91%. And almost all of that is, of course, AI spending.

Yeah. And let's just quickly talk about Tencent. Yeah. missed on profit, but beat on revenue. The stock slipped slightly, but not massively. There's honestly not that much to say with these earnings, but the thing that jumped out to me was their CapEx number, which almost doubled, up 91%. And almost all of that is, of course, AI spending.

Yeah. And let's just quickly talk about Tencent. Yeah. missed on profit, but beat on revenue. The stock slipped slightly, but not massively. There's honestly not that much to say with these earnings, but the thing that jumped out to me was their CapEx number, which almost doubled, up 91%. And almost all of that is, of course, AI spending.

So to me, the takeaway is Tencent is jumping headfirst into the AI race. They're stockpiling up on chips. They're building data centers. They're developing these proprietary models. And they're perfectly suited to do this because it's primarily a gaming company. That's their main business. But it's also an advertising company because remember, Tencent owns WeChat.

So to me, the takeaway is Tencent is jumping headfirst into the AI race. They're stockpiling up on chips. They're building data centers. They're developing these proprietary models. And they're perfectly suited to do this because it's primarily a gaming company. That's their main business. But it's also an advertising company because remember, Tencent owns WeChat.

So to me, the takeaway is Tencent is jumping headfirst into the AI race. They're stockpiling up on chips. They're building data centers. They're developing these proprietary models. And they're perfectly suited to do this because it's primarily a gaming company. That's their main business. But it's also an advertising company because remember, Tencent owns WeChat.

And I think what we've seen so far is that the main beneficiary of AI in terms of actual revenue growth is Tencent. If you have great AI, you have better, more accurate ad targeting. And that's what we've seen with Meta, which is why Meta is on such a tear right now. So I think we will probably see the same thing with Tencent. I think it was pretty good earnings from Tencent.

And I think what we've seen so far is that the main beneficiary of AI in terms of actual revenue growth is Tencent. If you have great AI, you have better, more accurate ad targeting. And that's what we've seen with Meta, which is why Meta is on such a tear right now. So I think we will probably see the same thing with Tencent. I think it was pretty good earnings from Tencent.

And I think what we've seen so far is that the main beneficiary of AI in terms of actual revenue growth is Tencent. If you have great AI, you have better, more accurate ad targeting. And that's what we've seen with Meta, which is why Meta is on such a tear right now. So I think we will probably see the same thing with Tencent. I think it was pretty good earnings from Tencent.

But the larger story to me is AI... As indicated by what Tencent is doing and Alibaba in terms of their spending and their investment in AI, AI in China is coming. It's coming very hard, very fast. I think this should generally make you bullish on China, specifically the Chinese tech sector. And I should point out just the PE multiples again. China, we got at 15x average compared to the US at 27.

But the larger story to me is AI... As indicated by what Tencent is doing and Alibaba in terms of their spending and their investment in AI, AI in China is coming. It's coming very hard, very fast. I think this should generally make you bullish on China, specifically the Chinese tech sector. And I should point out just the PE multiples again. China, we got at 15x average compared to the US at 27.

But the larger story to me is AI... As indicated by what Tencent is doing and Alibaba in terms of their spending and their investment in AI, AI in China is coming. It's coming very hard, very fast. I think this should generally make you bullish on China, specifically the Chinese tech sector. And I should point out just the PE multiples again. China, we got at 15x average compared to the US at 27.

And that's despite the fact that the Hang Seng is up 20% year-to-date. It's been a great year for the Chinese market, but you're still looking at... really low multiples when you compare it to the US.

And that's despite the fact that the Hang Seng is up 20% year-to-date. It's been a great year for the Chinese market, but you're still looking at... really low multiples when you compare it to the US.

And that's despite the fact that the Hang Seng is up 20% year-to-date. It's been a great year for the Chinese market, but you're still looking at... really low multiples when you compare it to the US.