Tencent, UMT AG, and AMD make a strong statement

Tencent – Forecasts pulverized

It is not only critical raw materials that are fueling a trade war between the two economies. The US and China are also dueling more than ever in the race for the AI crown. One of the giants from the Middle Kingdom, Tencent, presented impressive figures last week that significantly exceeded analysts' forecasts.

In the third quarter, revenue rose by 15% to CNY 192.9 billion, clearly exceeding analysts' expectations. Tencent also delivered strong operating results, significantly exceeding forecasts with CNY 63.6 billion. The use of AI in advertising, target group analysis, and game development, in particular, gave a visible boost to the result.

The gaming segment presents a mixed picture. While domestic revenue grew by 15%, driven by hits such as Delta Force and the extremely successful release of VALORANT MOBILE, international business grew by as much as 43% to CNY 20.8 billion. Success factors included the strong performance of Clash Royale, Dying Light: The Beast, and higher revenues from Supercell titles.

Tencent is also pushing ahead with its AI strategy outside the gaming sector. The Company is investing heavily in cloud infrastructure and AI services, setting its sights on industry giants AWS, Google Cloud, and Microsoft Azure. Cloud revenues are also rising thanks to growing demand for AI-based tools.

With the update of its basic AI model, HunYuan, Tencent is also improving its programming, mathematics, and science capabilities. At the same time, the Company is also using DeepSeek in some applications. The strategy has paid off on the stock market so far: Tencent shares are up around 54% since the beginning of the year.

UMT United Mobility Technology AG – Small-cap with great scaling potential

Munich-based UMT United Mobility Technology AG has radically reinvented itself over the past two years. After completely eliminating previous risks and exiting the payment business, the Company now presents itself as a focused provider of AI-supported process automation, tapping into a global growth market.

At the heart of the new business model is "UMS Vision AI", a modular platform that delivers immediately usable results without lengthy training. UMT combines modern large-model frameworks with proprietary tools to evaluate documents, automate processes, and prepare decisions. The product acts as an "AI colleague" that takes on tasks that were previously performed manually by several employees, a key advantage in small and medium-sized businesses, where skilled workers are often in short supply.

UMT is growing particularly strongly in the logistics industry, where customs processes, order entry, and dispatching have traditionally been labor-intensive. According to the Company, customers save between 400 and 1,500 working hours annually. The ARR-based B2B SaaS model ensures predictable revenues, high margins, and long-term customer loyalty, as UMT is deeply integrated into operational workflows.

Internationally, the United Kingdom, in particular, is proving to be a growth engine. After Brexit, many companies are struggling with complex customs requirements, which can be significantly simplified through AI automation. At the same time, UMT is tapping into new markets with on-premise solutions in security-critical industries such as armaments and defense, where data sovereignty is a top priority. Additional investments and partnerships are planned to expand the portfolio in a targeted manner.

According to CEO Erik Nagel, UMT is at the beginning of an intense scaling phase. The product pipeline is growing dynamically, and management considers revenues of around EUR 70 million to be realistic for 2029/30, up from around EUR 1.5 million today. Given a current market capitalization of only EUR 3.6 million, this prospect is likely to attract the attention of investors.

AMD – Big goals

At Financial Analyst Day in New York last week, AMD presented one of the most ambitious growth strategies in its corporate history. CEO Lisa Su sees the global AI market growing to USD 1 trillion by 2030 and aims to make AMD the most important challenger to market leader Nvidia.

The focus is on the data center segment, which currently accounts for around 40% of total revenue. By 2028, revenues here are expected to increase by 60%. This is based on the continuing high demand for AI accelerators. AMD plans annual group growth of over 35%, driven by new products such as the MI450 GPUs, the upcoming MI500 series, and the Helios rack-scale system, which targets hyperscalers, governments, and AI companies.

AMD also plans to grow strongly financially. CFO Jean Hu expects gross margins of 55 to 58% and operating margins of over 35%. As a result, management sees a "clear path" to earnings of over USD 20 per share by 2028, which would represent a massive jump from today.

AMD is also clearly targeting Nvidia in its core AI business. While its competitor holds around 90% market share in data center GPUs, AMD aims to achieve double-digit market share in the medium term and generate double-digit billion revenue by 2027. Major orders underscore these ambitions. OpenAI, Oracle, and Meta are already among its most important customers. Starting in 2026, around 50,000 chips are to be delivered to Oracle, and AMD is also providing one gigawatt of graphics performance for OpenAI, with an option for up to six gigawatts.

In addition to AI, AMD also aims to grow in the traditional CPU and PC business. Its market share in server CPUs is expected to rise from 30% to 50%, and in the client segment by more than 10%.

The Chinese internet giant Tencent was able to beat analysts' estimates with its third-quarter results. AMD is set to challenge market leader Nvidia in the coming years. Munich-based UMT AG is making its mark with its AI platform.