5 Best Chinese Stocks To Buy Right Now

4. Baidu, Inc. (NASDAQ:BIDU)

Number of Hedge Fund Holders: 48

Baidu, Inc. (NASDAQ:BIDU) is a Chinese company that provides internet search services and operates through Baidu Core and iQIYI segments. It is one of the best Chinese stocks to buy. On February 21, Benchmark slightly lowered its core revenue estimates for Baidu, Inc. (NASDAQ:BIDU) due to a moderately weaker-than-expected growth in non-ad revenue, particularly in areas like hardware. However, Benchmark analysts maintain a Buy rating on Baidu shares with a $210 price target. The core ad growth projection for Baidu, Inc. (NASDAQ:BIDU) remains unchanged at 6.8% year-over-year, indicating a resilient ad base benefiting from the recovery in offline verticals such as healthcare and travel. The analysts believe Baidu is on track to achieve over RMB100 million GenAI ad contribution in the fourth quarter of 2023.

According to Insider Monkey’s fourth quarter database, 48 hedge funds were bullish on Baidu, Inc. (NASDAQ:BIDU), compared to 44 funds in the prior quarter. Alkeon Capital Management is the largest stakeholder of the company, with 2.18 million shares worth $260.4 million. 

Ariel Global Fund made the following comment about Baidu, Inc. (NASDAQ:BIDU) in its Q2 2023 investor letter:

“By comparison, after a strong run last quarter, China’s internet search and online community leader, Baidu, Inc. (NASDAQ:BIDU) declined alongside a correction in Chinese stocks attributed to weak gross domestic product. We believe this price action runs counter to the company’s solid business fundamentals. Baidu delivered a top- and bottom-line earnings beat in the period, driven by a recovery in ad and cloud revenues. The company continues to invest heavily in Artificial Intelligence (AI) and is launching a generative AI, Ernie Bot, aimed at rivaling Open AI’s ChatGPT. While monetization of the new technology is largely dependent on regulatory review, we think Baidu should continue to experience margin improvement with the ongoing implementation of efficiency and profitability initiatives. While some investors remain on the sidelines due to uncertainty surrounding China’s economic growth, government regulations, and the political rhetoric towards Taiwan, we remain enthusiastic about Baidu’s longer-term opportunity for revenue growth and margin expansion across internet search, cloud, autonomous driving, artificial intelligence and online video.”