Analysts Raise Price Targets on Baidu (BIDU)
Baidu, Inc. (NASDAQ:BIDU) is one of the 15 AI Stocks That Are Skyrocketing. On February 4, Tiger Securities increased its price target on Baidu, Inc. (NASDAQ:BIDU) from $135 to $150 and kept its Buy rating.
Tiger Securities highlighted expectations that Baidu, Inc. (NASDAQ:BIDU) will continue to create more value for shareholders after it recently announced the listing of its AI chip unit, Kunlunxin. The company has confidentially filed for an initial public offering (IPO) in Hong Kong IPO for Kunlunxin. Baidu, Inc. (NASDAQ:BIDU) currently owns about 59-60% of the subsidiary and plans to keep majority control after the IPO.
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Additionally, Tiger Securities noted that Baidu Cloud is in a good position to benefit from faster AI adoption across China. The research firm also believes Baidu, Inc.’s (NASDAQ:BIDU) robotaxi business may see a higher valuation as investors shift their focus from AI infrastructure to downstream applications.
The research firm is still cautious on Baidu, Inc.’s (NASDAQ:BIDU) short-term revenue and earnings growth. However, Tiger Securities noted that the stock is increasingly being driven by its long-term AI potential. The firm sees several possible catalysts ahead, especially in the robotaxi and AI cloud businesses.
Earlier, on January 26, Barclays also raised its price target on Baidu, Inc. (NASDAQ:BIDU) from $100 to $147 and maintained an Equal Weight rating on the stock.
Baidu, Inc. (NASDAQ:BIDU) is a leading AI and technology company that specializes in internet services and AI. It offers a full AI stack of four layers, including cloud infrastructure, in-house developed deep learning framework PaddlePaddle, self-developed ERNIE foundation models, and applications.
While we acknowledge the potential of BIDU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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