Core Viewpoint - The recent Nasdaq correction presents an opportunity for investors to consider historically cheap and well-diversified AI stocks, rather than focusing solely on high-profile companies like Nvidia and Palantir Technologies [1][5]. Group 1: Market Context - The Nasdaq Composite officially entered correction territory, sitting 10% below its all-time high of 20,173.89 as of March 6, 2024 [2]. - AI stocks have been particularly hard-hit during this correction, reflecting a broader market trend where stocks can move in both directions [2][4]. Group 2: AI Market Potential - The global addressable market for AI technology is estimated to reach $15.7 trillion by the end of the decade, indicating significant growth potential for various businesses [3]. Group 3: Investment Opportunities - **Amazon (AMZN)**: - Amazon's growth is primarily driven by its cloud service platform, AWS, which has an annual revenue run-rate of $115 billion as of the end of 2024 [7]. - Amazon's stock is currently valued at 12 times forward-year cash flow, which is 43% below its five-year average [9]. - **Alphabet (GOOGL)**: - Alphabet's long-term growth is also tied to its cloud service, Google Cloud, which accounted for 11% of cloud-service spending in Q4 2024 [11]. - The company's forward P/E ratio of 17 is approximately 26% below its five-year average, and it has $95.7 billion in cash and equivalents [13]. - **Baidu (BIDU)**: - Baidu has maintained a significant market share in China's internet search, with a 50% to 85% share over the past decade [15]. - The stock is currently valued at about 8 times forward-year earnings, and the company holds over $19 billion in cash and equivalents [17]. - **Meta Platforms (META)**: - Meta generates nearly 98% of its net sales from advertising, with a strong user base of 3.35 billion daily active users [19]. - The company has a forward P/E ratio below 22, which is attractive given its double-digit sales and profit growth rates [21].

Core Insights - Baidu, Inc. has experienced a 12.6% increase in shares over the past six months, outperforming the Zacks Computer and Technology sector's growth of 9.3, as it transitions from an Internet-centric business to an AI-focused technology leader [1] Financial Performance - In Q4 2024, Baidu's total revenues slightly declined by 2% year-over-year to RMB34.1 billion ($4.68 billion), while Baidu Core revenues increased by 1% to RMB27.7 billion ($3.8 billion) [2] - The AI Cloud business showed significant growth, achieving a 26% year-over-year increase in Q4 2024, which helped mitigate a 7% decline in the traditional online marketing business [3] Strategic Developments - Baidu's ERNIE foundation model handled approximately 1.65 billion API calls daily in December 2024, with external API calls growing by 178% quarter-over-quarter [6] - The company plans to open-source its upcoming ERNIE 4.5 series and make ERNIE Bot free for users to enhance market awareness and adoption [7] - AI-enabled features in Baidu Wenku reached 94 million monthly active users in December 2024, marking a 216% year-over-year increase [8] Autonomous Driving Initiatives - Baidu's Apollo Go service provided over 1.1 million rides in Q4 2024, a 36% increase year-over-year, and surpassed nine million total rides in January 2025 [9] - The company has secured permits for autonomous driving testing in Hong Kong, expanding its market presence [10] Competitive Landscape - Baidu faces competition in the AI cloud market from Alibaba and Tencent, which have strong enterprise relationships and financial resources [11] - The autonomous driving sector is becoming increasingly competitive with emerging players like Xpeng and WeRide [11] Valuation Metrics - Baidu's current forward 12-month P/S ratio is 1.65x, significantly lower than the Zacks Internet - Services industry average of 5.57x, indicating a discounted valuation [12] Financial Position - As of December 31, 2024, Baidu held RMB139.1 billion ($19.06 billion) in cash and equivalents, and has repurchased over $1 billion in shares since the beginning of 2024 [15] - The Zacks Consensus Estimate for 2025 revenues is $18.73 billion, reflecting a year-over-year decline of 1.31%, while earnings estimates have increased by 3.9% over the past 30 days [16] Future Outlook - Baidu is positioned to benefit from continued AI adoption and autonomous driving expansion, with expectations for gradual improvement in its advertising business and strong momentum in the AI Cloud sector [19] - The current stock price may represent an attractive entry point for long-term investors, given the company's technology leadership and strategic focus on high-growth areas [20]

Group 1 - Michael Burry's long bets on Chinese technology stocks, particularly JD.com, have yielded significant returns in 2025 [1][5] - JD.com experienced a notable stock rally, with shares rising approximately 7% to $47, resulting in Burry gaining around $1 million on his position [2][3] - The surge in JD.com's stock price is attributed to its strong Q4 earnings report, which exceeded analyst expectations [3][4] Group 2 - JD.com reported revenue of ¥346.99 billion (~$47.85 billion), surpassing the anticipated ¥332.38 billion (~$45.84 billion) and the previous quarter's ¥260.39 billion (~$35.91 billion) [4] - The company's adjusted diluted earnings per share (EPS) reached ¥7.42 (~$1.02), significantly higher than the ¥5.30 (~$0.73) reported a year earlier [4] - Year-to-date, JD.com's stock has increased by 27.84%, raising the value of Burry's stake from $10.4 million to approximately $13.1 million [6] Group 3 - Other investments by Burry, such as Alibaba and Baidu, have also performed well, with Alibaba up 66.02% and Baidu up 11.10% since the beginning of the year [7]

Want a good growth stock but don't want to pay a fortune for it? It may seem like top growth stocks are trading at excessive prices and are bad buys, but there are plenty of good examples out there of growing businesses that you can still buy at reasonable, even downright cheap earnings multiples.Three growth stocks trading at some incredibly appealing valuations right now are Carnival Corp. (CCL 1.96%), Baidu (BIDU 5.43%), and PayPal Holdings (PYPL 2.99%). Here's why these affordable titans could make for ...

These two companies could be big winners in the autonomous driving race.Artificial intelligence (AI) is undoubtedly one of the biggest trends of our generation, and it will disrupt almost everything that we know.One industry that will likely see the transformative impact as a result of AI is the transport industry, thanks to the rise of autonomous vehicles, autonomous public transportation, etc. There are two companies well-positioned to ride the growth of the autonomous ride-hailing industry: Uber Technolo ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being under ...

Asia Pacific Equity Research 02 March 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. Weichai Power - H/A Transitioning from old-economy cyclical to new economy AI and data center/robotic play; stay bullish Weichai Power's A/H share (2338 HK/000338 CH) ...

Core Insights - China's technology sector is experiencing significant advancements, with major companies like Tencent, Alibaba, Baidu, JD.com, and PDD Holdings leading the charge in AI and emerging technologies [2][8] Group 1: Technological Advancements - DeepSeek, an AI startup, is at the forefront of China's tech revolution, recently launching its R2 model, which enhances coding capabilities and multilingual reasoning [3] - China's semiconductor industry holds over 25% of the global market share in semiconductor packaging and more than 50% in advanced packaging, leveraging technologies like 2.5D/3D stacking [4] - Robotics innovations were showcased at CES 2025, with Unitree Robotics presenting humanoid and quadrupedal robots, highlighting China's rapid progress in this field [5] - Electric vehicle technology is advancing, with companies like Zeekr and Great Wall Motor displaying innovative models, supported by suppliers like Hesai, whose lidar units have dropped in price from $80,000 in 2017 to around $200 in 2025 [6] - Augmented reality is gaining traction, with companies like Xreal and Rokid presenting advanced AR glasses and eyewear, reflecting China's comprehensive approach to technological innovation [7] Group 2: Company-Specific Developments - Tencent has launched its Hunyuan Turbo S model, which delivers responses within a second, significantly outperforming competitors and matching capabilities of DeepSeek's models [10][11] - Alibaba is investing $53 billion in cloud and AI infrastructure over the next three years, positioning itself as a leader in AI with the upcoming release of its QwQ-Max-Preview model [14][15] - Baidu is focusing on autonomous driving through a partnership with CATL to develop competitive driverless vehicles and plans to launch its upgraded Ernie 4.5 AI model [16][17][18]

China's technology landscape in 2025 showcases remarkable advancements across multiple sectors, with the nation steadily positioning itself as a global technology powerhouse. Tech giants, including Tencent Holdings (TCEHY) , Alibaba (BABA) , Baidu (BIDU) , JD.com (JD) and PDD Holdings (PDD) , are making waves to capitalize on this technological renaissance, strategically investing in AI infrastructure and emerging technologies to strengthen China's digital ecosystem.At the forefront of this technological re ...