Tencent, JD.com Earnings Test China Tech Rotation as JD Profit Seen Up 18%

3 articles · Updated · Yahoo Finance · Aug 11

Tencent reports Wednesday and JD.com on Thursday, giving investors an early verdict on whether China’s shift from AI infrastructure stocks into internet platforms can hold.
That rotation has accelerated since late June as the AI rally cooled, with JD.com and Alibaba leading Hang Seng gains since July while SMIC has moved the other way.
JD is expected to post an 18% year-on-year rise in second-quarter non-GAAP net profit to 8.7 billion yuan, helped by narrowing food-delivery losses and a calmer competitive backdrop.
SMIC’s outlook may be the key counterweight: Bloomberg Intelligence says its 20% to 22% margin target could be hard to meet even as second-quarter sales are seen rising 14% to 16% from the prior quarter.
Analysts expect widening dispersion across China internet names, with markets favoring companies that turn AI investment into earnings and defend margins rather than simply lift capex.