Tencent 3Q25: Strong Fundamentals, Lower Capex, and Clear AI Roadmap

Overall, Tencent delivered a solid set of results. The market’s primary focus this quarter was the sequential and year-over-year decline in Capex. Below is a consolidated summary of the most frequently asked questions from the FY25Q3 earnings call, NDR sessions, and convertible bond investor discussions, along with management’s corresponding responses (ranked by cumulative frequency of inquiry).

Capex / GPU Supply / Leasing vs. Purchasing

Why Did Tencent “Lease More and Buy Less” GPUs in FY25, and Will Capex Re-Accelerate?

Current Strategy: Because Nvidia chips are supply-constrained, Tencent has leaned more heavily on GPU leasing (Opex) to secure compute capacity rather than aggressively lifting Capex.

China-made GPU Procurement: Tencent has already placed sizable orders with Chinese GPU vendors. However, several months typically elapse between order placement, chip delivery, and deployment in data centers. GPU leasing temporarily fills this capacity gap.

Capex Trajectory: 3Q25: Both sequential and YoY Capex declined primarily because chips had not yet arrived—not due to any strategic pullback. After Deliveries Arrive: Capex and depreciation will rise accordingly, while leasing costs will decline. Management Outlook: FY25 Capex in absolute value will exceed FY24 levels. Beginning in 4Q25, Capex should accelerate, with further reinforcement in 2026.