10 Michael Burry Stocks with Huge Upside Potential

8. Baidu, Inc. (NASDAQ:BIDU)

Scion Asset Management’s Q4 Stake: $10.53 million

Analyst Upside as of May 9: 22.81%

Number of Hedge Fund Holders: 50

Baidu, Inc. (NASDAQ:BIDU), a leading Chinese technology company, manages China’s largest internet search engine. Beyond its primary search business, the company has expanded into AI-driven initiatives that include cloud computing, self-driving technology, and conversational AI models like Ernie.

Macquarie analyst Ellie Jiang cut Baidu, Inc. (NASDAQ:BIDU) price target to $83 from $85, while maintaining a Neutral rating on the company. Jiang stated that while Baidu is growing the amount of AI-generated content on its search platform, the plan for monetizing these AI enhancements is still unclear. This is especially important considering the current sluggish economic climate and strong competition in China’s search market. Jiang offered a conservative forecast for Baidu’s advertising segment, estimating a 6% year-over-year decrease in revenue to Rmb15.9 billion in the first quarter of 2025. However, despite present obstacles, there is a positive aspect concerning Baidu’s AI Cloud, which is progressing as a significant area of growth. The AI Cloud’s revenue is predicted to climb by 25% year on year in the first quarter to Rmb5.9 billion, which could help ease the challenges faced by the company’s advertising segment.