Is Baidu (BIDU) One of the AI Stocks on Wall Street’s Radar?

Baidu Inc. (NASDAQ:BIDU) is one of the AI stocks on Wall Street’s radar. On June 28, Reuters reported that Kunlunxin, the semiconductor unit of Baidu, is reportedly targeting a $50 billion valuation for its upcoming Hong Kong IPO. This figure represents a 17-fold increase since its funding round just six months ago, when it was valued at approximately $3 billion. The rapid surge highlights intense market frenzy surrounding AI hardware as domestic chipmakers capitalize on China’s push for homegrown technology and supply chain constraints.

Founded in 2011, Kunlunxin has emerged as a key contender against Nvidia and other domestic rivals, currently benefiting from surging demand and US export controls. Despite being smaller than competitors like Huawei or Alibaba’s chip division, it has secured major clients including Tencent, while ByteDance has reportedly considered using its chips. Citi analysts project the company’s revenue to triple to 14 billion yuan by 2027.

Is Baidu (BIDU) One of the AI Stocks on Wall Street’s Radar?

Amid concerns about market hubris and potential investment bubbles, the Bank for International Settlements has warned that the current AI capital expenditure boom could eventually lead to a significant investment bust.

Baidu Inc. (NASDAQ:BIDU) provides internet search, online entertainment, and online marketing services, including search-based, feed-based, and other services. It is headquartered in Beijing, China, and has transformed itself into a full-stack AI player.

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 the cheapest AI stock.

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