Baidu (BIDU) Sees Lower Price Target from Barclays

Baidu Inc. (NASDAQ:BIDUis among the 10 most undervalued stocks to buy and hold for 10 years.

On March 5, Barclays lowered its price target on Baidu Inc. (NASDAQ:BIDU) shares to $128 from $147 while maintaining an Equalweight rating, citing diverging trends between the company’s growing AI-related revenues and declining legacy advertising revenues.

Barclays noted that the adoption of AI chatbots has created a substitution effect on traditional search, placing Baidu Inc. (NASDAQ:BIDU) in a position where AI chatbots may lower advertising monetization relative to traditional search. Leading AI players globally are still searching for viable and sizable monetization models. The firm expressed positive views on the chips created by Kunlun, a company that is 60% owned by Baidu Inc. (NASDAQ:BIDU), with industry contacts confirming technical performance.

In addition, Barclays said it maintained its Equalweight rating on Baidu Inc. (NASDAQ:BIDU) stock due to ongoing pressure on the core advertising business, which carries high margins, and limited visibility of a bottom for that segment.

Meanwhile, on the same day, analysts at Susquehanna raised their price target on Baidu Inc. (NASDAQ:BIDU) from $110 to $120.

Baidu Inc. (NASDAQ:BIDU) provides internet search, online entertainment, and online marketing services, including search-based, feed-based, and other services.

While we acknowledge the potential of BIDU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BIDU and that has 100x upside potential, check out our report about this cheapest AI stock.

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