3 Reasons Baidu Could Be the Dark Horse of Global AI

Core Insights - Baidu Inc. is a leading internet company in China, primarily known for its search business, which dominates the country's internet searches. However, its rapidly growing AI and cloud business is gaining attention from U.S. investors [3][4] - Despite reporting a significant net loss in the latest quarter, Baidu's substantial cash reserves of approximately 296.4 billion yuan ($41.6 billion) may alleviate investor concerns. The stock has a favorable outlook, with 17 out of 24 Wall Street analysts recommending it as a Buy, and potential upside of 22% or more on top of this year's 44% rally [4] AI Business Growth - Baidu's AI offerings, including cloud-based tools and AI-native monetization products, have seen impressive revenue growth, with AI-based businesses reporting a 50% year-over-year increase to 10 million yuan (approximately $1.4 million) [5] - The company's mobility-as-a-service (MaaS) product, Qianfan, is experiencing growth, and Baidu's AI Cloud Infra products have achieved a 33% year-over-year revenue increase, alongside a remarkable 128% rise in subscription-based revenue from AI accelerator infrastructure [6] Transformation and Expansion - Baidu is successfully transforming its legacy search business into an AI-driven revenue-generating model, with non-online market revenue compensating for a slowdown in the core search area [7][8] - The Apollo Go autonomous ride-hailing service is expanding rapidly, including new international offerings, showcasing Baidu's commitment to leveraging AI in various sectors [7]