Benchmark Reiterates Its Call on NetEase Inc (NTES) Stock. Here’s Why

NetEase Inc (NASDAQ:NTES) is one of the most promising metaverse stocks to buy now. NetEase stock has gone up more than 12% in the past month, and analysts see more upside potential.

Benchmark Reiterates Its Call on NetEase Inc (NTES) Stock. Here’s Why

On May 22, Benchmark reiterated a Buy rating on NetEase Inc (NASDAQ:NTES) stock with a price target of $158. This followed NetEase’s strong Q1 2026 results. Revenue increased 6.1% YoY to $4.4 billion, and Non-GAAP basic net income was $0.51 per share,  compared with $0.32 per share, in the previous quarter. The quarter was supported by the strong performance of legacy franchises and advancing overseas expansion.

Looking ahead, Benchmark sees several opportunities for NetEase’s margin expansion. These include declining channel costs, improved operating leverage supported by long-lived franchises, and a higher mix of cross-platform titles. In light of this, the brokerage raised its margin assumptions for NetEase for fiscal 2026 and 2027.

Benchmark also noted that NetEase is well-positioned to adapt to AI-driven industry changes. The company is integrating AI tools into development workflow as well as gameplay systems. This is leading to enhanced productivity and content innovation. As early as 2021, NetEase has been focused on building a metaverse. The company developed an immersive avatar-based virtual event platform called Yaotai. It also offers AI-driven immersive experiences through its NetEase Games division.

NetEase Inc (NASDAQ:NTES) is a Chinese technology company best-known for developing and publishing videogames. It has delivered a diverse lineup of immersive games across multiple platforms. The company also offers advertising and media streaming.

While we acknowledge the risk and potential of NTES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NTES and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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