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Baidu’s (BIDU) AI Push Offsets Weak Ads, Analyst Raises Target to $158

Baidu, Inc. (NASDAQ:BIDU) is one of the  AI Stocks Making Moves on Wall StreetOn November 19, Benchmark analyst Fawne Jiang raised the firm’s price target on the stock to $158 from $115 and kept a “Buy” rating on the shares. The firm believes that strong AI momentum is helping Baidu offset a weak ad recovery.

The firm noted how Baidu’s Q3 results show diverging trends. Its main search ad business is weak, and it remains unclear when it will recover considering that the company is testing more AI features and also facing competition.

On the other hand, AI initiatives are gaining ground and account for more than 40% of core revenue under the company’s new disclosure framework. These initiatives are helping drive growth across Cloud, AI applications, and AI-native marketing services.

The firm believes that several factors support a higher valuation for Baidu.

“Management is committed to scaling AI, supported by a competitive technology stack and rising structural adoption. With greater transparency, faster AI adoption, and optionality from asset value recognition, we believe a sum-of-the-parts approach is appropriate and raise our price target to $158, reflecting our SoTP valuation.”

Benchmark further stated how search recovery remains concerning, but Baidu’s AI momentum, strong execution, and potential for proactive capital returns will help drive further upside.

“Search recovery remains a near-term concern, as it drives the majority of NT earnings, but we view upside as likely from AI momentum, execution of strategic milestones, and potential for proactive capital returns to better deploy Baidu’s large net cash balance.”

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.

READ NEXT: 10 AI Stocks Investors Are Watching and 10 AI Stocks Analysts are Tracking Closely

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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