This Chinese video platform will outperform as it ramps up game releases, says Morgan Stanley
Bilibili will outperform as it prepares to release new games and continues to grow its users and content with the help of artificial intelligence, according to Morgan Stanley. The investment bank upgraded the Chinese video-sharing platform to overweight from equal weight. It also hiked its price target on shares to $31 from $25, suggesting 30.5% upside from Friday’s close. “We see emerging value in Bilibili stock with better game pipeline visibility, sustained AI adoption tailwinds and a stronger valuation after the recent pullback,” analyst Yang Liu said in a note to clients. “We expect three new games in the pipeline to drive inflection in [the second half of 2026], with potentially the biggest contribution from Romance of the Three Kingdoms: Wangdaotianxia…followed by NCard and Lumi Master,” Liu wrote. Those releases seem to not have been “fully baked into the market consensus” that forecasted game revenue of 6.8 billion yuan in 2027, the analyst added. AI adoption is also likely to boost shares of Bilibili, per Morgan Stanley. Bilbili has lowered its programing expenses by embracing AI-assisted “vibe coding,” while its creators have leveraged the technology to pump out content more efficiently for the video platform. Additionally, the company has leveraged AI to better identify and promote high-quality content, increasing its number of users and the time they spend on Bilibili. Morgan Stanley’s call falls in line with consensus on the Street. Of the 31 analysts covering Bilibili, 29 have a buy or strong buy on shares. Shares have edged down about 3% since the beginning of the year. BILI YTD mountain Shares have fallen roughly 3% in the year to date.