Analyst Cautious on Baidu (BIDU) as AI Search Shifts Slow Ad Growth

Baidu, Inc. (NASDAQ:BIDU) is one of the AI Stocks Analysts Are Backing Right NowOn September 2, Susquehanna analyst Shyam Patel raised the price target on the stock to $95.00 (from $85.00) while maintaining a Neutral rating.

The firm highlighted mixed 2Q results, with weakness in the online marketing business due to continued monetization headwinds from the transition to AI-powered search. However, the management remains optimistic about the long-term potential of AI search monetization.

“BIDU reported mixed 2Q results, with weakness in the online marketing business as it continues to face monetization headwinds from the transition to AI-powered search, though the company saw solid momentum in AI cloud.”

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“Despite the near-term headwinds from AI-powered search, management remained optimistic about the long-term potential for AI search monetization. While the valuation remains undemanding, we believe the stock is likely to remain rangebound, leading us to maintain our Neutral rating.”

Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.

While we acknowledge the risk and potential of BIDU  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 BIDU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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