According to Bernstein, the explosive growth fueled by the growing game library and artificial intelligence integration could raise NetEase’s stake to 38%. The company began coverage of the video game developer Monday with an outsized rating and a share price target of $120. U.S.-traded shares ended Monday at $86.73 and are up 24% in 2023. The China-based company has primarily focused its gaming efforts for the PC and PC platforms. mobile. Analyst Robin Zhu said NetEase will continue to profit from its vast existing game library while adding general AI functionality to its products. “We expect the full-blown growth of AI to represent a massive productivity boost for video game development, driving efficiency gains in game production, but also enabling immersive experiences. richer gameplay — both in-game (e.g. AI-powered NPCs [non-player characters]user-generated content) and in the broader fan ecosystem,” said Zhu, adding that the list of high profile releases coming this year includes “Justice” Mobile,” “Harry Potter: Magic Awakened,” and “Eggy Party.” NTES YTD Mountain NetEase’s stock is up 24% year-to-date across a variety of sectors while boosting investor excitement , Zhu added that AI will act more as a complementary tool for growing the game industry and NetEase rather than taking full control, and integrating multiple creative workflows into one experience unique means we suspect that creative artificial intelligence could soon ‘disrupt’ video games,” he said. However, the trend of AI entering the industry will help developers spend less time on some of the more demanding aspects of building a game, and help “generate ideas and innovate ways.” play instead of manually producing in-game content.” Zhu also said the AI integration will also help developers bring games to market faster, while maintaining “interaction and willingness to pay.” — Michael Bloom of CNBC contributed to this report.