Baidu Inc. (NASDAQ:beginning) is one of Hot AI Stocks to Keep on Your Radar. On October 10, Macquarie upgraded the stock to “outperform” from “neutral” and raised its price target to $176 from $91.
The company stated that it sees “hidden value” in the Internet services company, especially as it turns into diversified revenue sources. The company has pivoted away from its weak search business due to increasing pressure from competition with short video and social platforms.
The company’s core advertising revenue is set to decline through late 2025, but the company said the weakness has already been priced in. However, investors should turn their attention to newer growth drivers such as AI cloud services, robotics, and chips.
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Baidu stock is up 57% year-to-date driven by the strength of its artificial intelligence (AI) cloud business and growing investor confidence in its internal AI segment in Kunlun.
The company noted that Kunlun’s AI chips could offset an estimated third of the company’s valuation as shipments increase and China pushes toward greater self-sufficiency in semiconductor production.
“We see Baidu moving toward more diversified revenue streams, with positive option value emerging from both cloud AI and robotics.”
Baidu (NASDAQ:BIDU) is a Chinese internet giant and AI leader, known for its noteworthy investments in AI technology and its position as the dominant search engine within the country.
While we recognize BIDU’s potential as an investment, we believe some AI stocks offer greater upside potential and carry less downside risk. If you’re looking for undervalued AI stocks that will also benefit significantly from the Trump-era tariffs and the reshoring trend, check out our free report on Best AI stocks for short term.
Read next: 10 trending AI stocks on Wall Street’s radar and 10 AI stocks in the spotlight for investors
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