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Macquarie Sees “Hidden Value” in Baidu’s (BIDU) AI Pivot, Raises Price Target to $176

Baidu, Inc. (NASDAQ:BIDU) is one of the Hot AI Stocks to Keep on Your RadarOn October 10, Macquarie upgraded the stock to “Outperform” from “Neutral” and raised the price target to $176 from $91.

The firm stated that it sees “hidden value” in the internet services company, particularly with its transition to diversified revenue streams. The company has been shifting away from its weakening search business because of increased pressure from competition with short-video and social platforms.

The company’s core advertising revenue is set to decline through late 2025, but the firm said that weakness is already priced in. That said, investors should shift their attention to newer growth drivers such as AI cloud services, robotaxis, and chips.

A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels

Baidu’s stock has surged 57% year-to-date driven by strength in its artificial intelligence (AI) cloud business and growing investor confidence in its Kunlun in-house AI chip.

The firm noted that Kunlun’s AI chips could make up for an estimated one-third of the company’s valuation as shipments ramp and China pushes for greater self-sufficiency in semiconductor production.

“We see Baidu pivoting towards more diversified revenue streams, with positive option value arising from both AI cloud and robotaxis.”

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 Trending AI Stocks on Wall Street’s Radar and 10 AI Stocks In The Spotlight For Investors

Disclosure: None.

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

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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