Tencent on Wednesday reported a 15% jump in second-quarter revenue as a strong performance in its gaming unit and AI investments boosted growth.

Here’s how Tencent did in the first quarter of 2025:

• Revenue: 184.504 billion Chinese yuan ($25.7 billion), compared to 161.117 billion Chinese yuan in the same period last year
• Operating profit: 63.052 billion yuan, versus 57.313 billion yuan last year

Domestic games revenue, which accounts for sales from China, rose 17% year-on-year to 40.4 billion yuan thanks to the performance of the company’s newly-released “Delta Force” game and evergreen titles such as “Honor of Kings,” “VALORANT” and “Peacekeeper Elite.”

Revenue from its international gaming business totaled 18.8 billion yuan, a 35% year-on-year increase driven by games such as “PUBG Mobile,” and the recently-released “Dune: Awakening.”

Meanwhile, Tencent said that AI-driven improvements to the company’s advertising platform and Weixin transaction ecosystem helped boost marketing services revenue by 20% in the quarter to 35.8 billion yuan.

“During the second quarter of 2025, we delivered double-digit revenue and non-IFRS operating profit growth on a year-on-year basis, as we invested in, and also benefitted from, utilising AI,” said Tencent CEO Ma Huateng.

Tencent said its capital expenditures surged 119% to 19.1 billion yuan in the second quarter, as the tech giant invested in AI upgrades for advertising, its gaming business and social media service Weixin.

The Shenzhen-headquartered company’s music unit posted better-than-expected results thanks to growth in strong growth from subscription and non-subscription online music revenue, according to Citi’s Alicia Yap. The firm said Tencent Music had 124 million music subscribers, up slightly from 123 million subscribers noted in Tencent’s first-quarter report.

Looking ahead to the second half of the year, Tencent Music “continues to drive high-quality growth in subscription revenues, growth momentum from fans economy, concert and ad revs will support faster-than-previously expected full year growth,” Yap said in a note.

Tencent, like other cloud computing firms, has put a higher focus on selling artificial intelligence tools as a way to boost revenue and differentiate its offerings from those of its rivals.

Earlier this summer, Tencent revealed it is looking to bring its cloud computing capabilities to Europe, pitching it against U.S. hyperscalers Amazon, Microsoft and Alphabet-owned Google, which collectively make up 70% share of Europe’s cloud market.

“We are striving to bring further benefits of AI to consumers and enterprises through powering more use cases within Weixin, driving usage of our AI native app Yuanbao, and upgrading the capabilities of our HunYuan foundation models,” Huateng said in the Wednesday earnings release.

— CNBC’s Arjun Kharpal contributed to this report.

CoreWeave shares fell about 6% in extended trading on Tuesday even as the provider of artificial intelligence infrastructure beat estimates for second-quarter revenue

Here’s how the company did in comparison with LSEG consensus:

• Earnings per share: Loss of 21 cents
• Revenue: $1.21 billion vs. $1.08 billion expected

Revenue more than tripled from $395.4 million a year earlier, CoreWeave said in a statement. The company registered a $290.5 million net loss, compared with a $323 million loss in second quarter of 2024. CoreWeave’s earnings per share figure wasn’t immediately comparable with estimates from LSEG.

CoreWeave’s operating margin shrank to 2% from 20% a year ago due primarily to $145 million in stock-based compensation costs. This is CoreWeave’s second quarter of full financial results as a public company following its IPO in March.

CoreWeave pointed to an expansion in business with OpenAI, a major client and investor. Also during the quarter, CoreWeave acquired Weights and Biases, a startup with software for monitoring AI models, for $1.4 billion.

In May, management touted 420% revenue growth, alongside widening losses and nearly $9 billion in debt. The stock still doubled anyway over the course of the next month.

CoreWeave shares became available on Nasdaq at the end of the first quarter, after the company sold 37.5 shares at $40 each, yielding $1.5 billion in proceeds. As of Tuesday’s close, the stock was trading at $148.75 for a market cap of over $72 billion.

A CoreWeave data center project with up to 250 megawatts of capacity is set to be delivered in 2026, the company said in the statement.

Executives will discuss the results and issue guidance on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Citi’s Tyler Radke’s bullish call on CoreWeave, upgraded to buy

The Trump administration is still working out the details of its 15% export tax on Nvidia and AMD and could bring deals of this kind to more companies, the White House’s Karoline Leavitt said Tuesday.

“Right now it stands with these two companies. Perhaps it could expand in the future to other companies,” said Leavitt, the White House’s spokesperson.

“The legality of it, the mechanics of it, is still being ironed out by the Department of Commerce, and I would defer you to them for any further details on how it will actually be implemented,” she continued.

President Donald Trump confirmed on Monday that he had negotiated a deal with Nvidia in which the U.S. government approves export licenses for the China-specific H20 AI chip in exchange for a 15% cut of revenue. Advanced Micro Devices also got licenses approved in exchange for a proportion of its China sales, the White House confirmed.

“I said, ‘If I’m going to do that, I want you to pay us as a country something, because I’m giving you a release,'” Trump said Monday.

“We follow rules the U.S. government sets for our participation in worldwide markets,” Nvidia said in a statement this week.

Trump said the export licenses for AMD and Nvidia were a done deal. But lawyers and experts who follow trade have warned that Trump’s deal may be complicated because of existing laws that regulate how the government can charge fees for export licenses.

The Commerce Department didn’t immediately return a request for comment.

The H20 is Nvidia’s Chinese-specific chip that is slowed down on purpose to comply with U.S. export relations. It’s related to the H100 and H200 chips that are used in the U.S., and was introduced after the Biden administration implemented export controls on artificial intelligence chips in 2023.

Earlier this year, Nvidia said that it was on track to sell more than $8 billion worth of H20 chips in a single quarter before the Trump administration in April said that it would require a license to export the chip.

Trump signaled in July that he was likely to approve export licenses for the chip after Nvidia CEO Jensen Huang visited the White House.

The U.S. regulates AI chips like those made by Nvidia for national security reasons, saying that they could be used by the Chinese government to leapfrog U.S. capabilities in AI, or they could be used by the Chinese military or linked groups.

The Chinese government has been encouraging local companies in recent weeks to avoid using Nvidia’s H20 chips for any government or national security-related work, Bloomberg reported on Tuesday.

WATCH: Access to Nvidia’s H20 won’t hand China an AI advantage: Analyst