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Investing.com - Benchmark lowered its price target on Bilibili (NASDAQ:BILI) to $28.00 from $30.00 on Friday, while maintaining a Buy rating on the Chinese digital entertainment platform. The stock, currently trading at $23.76 with a market cap of $9.72 billion, has shown strong momentum with a 31.2% gain year-to-date. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value metrics.
The price target adjustment follows Bilibili’s second-quarter 2025 results, which showed 20% year-over-year revenue growth driven by strong performances in gaming and advertising segments. The company’s actual revenue growth stands at 22.7%, with a healthy gross profit margin of 35.91%.
Benchmark noted that while near-term game revenue is expected to decline due to a high comparison base, the company’s underlying user engagement and monetization metrics remain healthy.
The firm highlighted Bilibili’s advertising business continues to build momentum, supported by AI-driven ad technology upgrades that are enhancing efficiency and driving robust performance-based revenue growth.
Bilibili’s margin expansion is tracking ahead of expectations, with non-GAAP operating profit margin reaching a new record high in the second quarter, and management reaffirmed its long-term margin targets despite some near-term softness in games and value-added services.
In other recent news, Bilibili reported its second-quarter results for 2025, revealing a strong performance with earnings per share of $1.29, surpassing analysts’ forecasts of $1.20. The company’s revenue for the quarter reached $7.34 billion, slightly above the anticipated $7.33 billion. Barclays (LON:BARC) raised its price target for Bilibili to $28.00 from $25.00, citing the company’s success in expanding its advertising segment, which grew 20% year-over-year in the second quarter. Meanwhile, Jefferies adjusted its price target for Bilibili to $28.00 from $29.00 following the second-quarter results, while maintaining a Buy rating. Jefferies highlighted that Bilibili’s non-GAAP operating profit exceeded forecasts due to lower-than-expected sales and marketing expenses. These developments reflect Bilibili’s ongoing efforts to enhance its financial performance and market position. Investors may find these updates noteworthy as they consider Bilibili’s recent progress and future potential.
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