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Tencent Holdings Ltd. (OTC:TCEHY) is among the most fantastic stocks every investor should pay attention to. In a November 7 report, Bloomberg said that sustained momentum in AI development should help the company to report strong earnings for the third quarter. Moreover, results from Tencent and its peers were expected to indicate progress and standing in the AI landscape amid the rising rivalry with the U.S.

On November 13, the company reported better-than-expected results with revenue surging 15% year-over-year to RMB 192.9 billion, and operating profit rising 19% to RMB 63.6 billion. Both of these came in ahead of the consensus of RMB 189.2 billion and RMB 58.01 billion, as per LSEG data, respectively. As was expected, investments in AI supported the topline growth with strong performance in gaming and marketing services, driven by AI-powered gaming engagement and ad targeting. Operating margin also improved by 100 basis points YoY to 33% (on IFRS basis). With strong topline growth and improved margins, EPS rose 20% to RMB 6.779.

Another development that is gaining traction amid the ongoing COP30 climate summit in Brazil is Tencent’s preparation for an alliance of carbon credit buyers. On Wednesday, November 12, Bloomberg reported that the company is in discussions with mostly Asian firms from the manufacturing, technology, and consumer sectors to create a consortium that can buy carbon credits.

Ella Wang, a senior program director at Tencent, said that the company needs to purchase spot and forward carbon credits to offset its emissions and to expedite its target to become carbon neutral. The alliance described above would create more demand. Ella further elaborated:

“We believe it would send a signal to the market and encourage more potential suppliers, especially in the Global South countries.” She also said, “Such an alliance would benefit the companies in many respects, including helping with compliance and technology adoption”.

Tencent Holdings Ltd. (OTC:TCEHY) is a leading Chinese multinational technology conglomerate specializing in internet-related services, entertainment, and artificial intelligence.

While we acknowledge the potential of TCEHY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  13 Best Stocks to Buy According to Citadel LLC and Goldman Sachs Defense Stocks: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

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Apple is stepping up its succession planning efforts, as it prepares for Tim Cook to step down as chief executive as soon as next year.

Several people familiar with discussions inside the tech group told the Financial Times that its board and senior executives have recently intensified preparations for Cook to hand over the reins at the $4tn company after more than 14 years.

John Ternus, Apple’s senior vice-president of hardware engineering, is widely seen as Cook’s most likely successor, although no final decisions have been made, these people said.

People close to Apple say the long-planned transition is not related to the company’s current performance, ahead of what is expected to be a blockbuster end-of-year sales period for the iPhone.

Apple declined to comment.

The company is unlikely to name a new CEO before its next earnings report in late January, which covers the critical holiday period.

An announcement early in the year would give its new leadership team time to settle in ahead of its big annual keynote events, its developer conference in June and its iPhone launch in September, the people said.

These people said that although preparations have intensified, the timing of any announcement could change.

Cook, Apple’s former operations chief who turned 65 this month, has led the company since 2011 when he took over the role from its co-founder Steve Jobs, who died months later. During Cook’s tenure, the Big Tech group’s market capitalisation has surged from about $350bn in 2011 to $4tn today.

Apple’s shares are trading close to an all-time high after strong results last month, although its stock-price rise of roughly 12 per cent this year lags behind its Big Tech rivals Alphabet, Nvidia and Microsoft, whose valuations have been propelled by Wall Street’s exuberance about artificial intelligence.

Apple has had a number of high-profile changes this year among its top executive team. Longtime Cook confidante, chief financial officer Luca Maestri, stepped back from his role at the start of this year. Jeff Williams, a Cook protégé, announced he was stepping down as chief operating officer in July.

Appointing Ternus would put an executive from the hardware side of the company back in charge at the iPhone maker at a time when Apple has struggled to break into new product categories and keep up with its Silicon Valley rivals in AI.

Cook has voiced his preference for an internal candidate to be chosen as his replacement, saying the company has “very detailed succession plans”.

“I love it there and I can’t envision my life without being there so I’ll be there a while,” he told singer Dua Lipa on her podcast in November 2023.