Tencent's AI Lag Fuels $173 Billion Stock Rout as Rivals Thrive

• Tencent Holdings Ltd. shares slumped nearly 11% this year, wiping out $173 billion in market value since October.
• The company is losing favor with investors due to concerns about falling behind in China's competitive AI race.
• Rivals like Alibaba and Baidu have seen stock rises partly due to optimism over their AI apps.
• Tencent's conservative AI strategy, focusing on integration into core services like WeChat, contrasts with rivals' heavy investment.
• Concerns are rising over profit margins due to a 1 billion yuan campaign to woo users to its AI tools.