Baidu Inc. (BIDU) Gains Analyst Backing on AI Cloud Strength Despite Ad Weakness

Baidu, Inc. (NASDAQ:BIDU) is one of the 12 AI Stocks in Focus on Wall Street: Tesla, Meta, and More.

Baidu, Inc. has recently been on the radar owing to its robust AI cloud momentum and improving growth trajectory, earning itself a place in our list of 12 AI Stocks in Focus on Wall Street.

On April 14, BofA Securities analyst Miranda Zhuang reiterated a Buy rating on the stock with a $180.00 price target. Discussing expectations, the firm noted how it expects Baidu Core’s first-quarter topline and bottom line to both meet consensus expectations. The firm maintains first quarter topline estimate at a 2% YoY decline and adj. OP at a 24% YoY decline.

Advertising remains under pressure, with the firm adjusting its forecasts by lowering ad revenue to a 19% year-over-year decline from negative 13% previously due to late Chinese New Year and competition. This weakness, however, is offset by raised AI Cloud Infrastructure revenue to 43% year-over-year growth from 25% previously driven by robust AI computing demand.

We expect Baidu’s revenue mix from AI powered businesses to expand to 51% in 1Q, which is a milestone signaling that AI has replaced legacy advertising to become the core of Baidu. Looking ahead, while legacy ad will remain under pressure, ad’s comp base will become easier, and we expect ad’s decline to be offset by robust AI cloud. Hence we expect 1Q to be the trough in 2026 and revenue growth will recover throughout 2Q–4Q26. We reiterate our Buy rating on the strong AI cloud momentum, event catalyst from AI chip business, attractive valuation of 6x FY26 EV/EBITDA (Bloomberg data). Maintain SOTP based PO of USD180/HKD176.

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.

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