Core Viewpoint - Baidu's multiple business assets are significantly undervalued, and its full-stack AI capabilities are gradually revealing their value as AI large model capabilities penetrate various sectors [2][3]. Group 1: AI Advertising Monetization - Baidu's core advertising business is undergoing a profound AI transformation, with AI-generated content accounting for 64% of mobile search results by July 2025, enhancing user engagement despite short-term revenue pressure [7]. - The new advertising model represented by Agents and digital humans has shown strong commercial potential, contributing 16% to Baidu's core advertising revenue in Q2 2025, approximately 2.6 billion yuan, with a quarter-on-quarter growth exceeding 50% [8]. Group 2: Autonomous Driving Expansion - Baidu's autonomous driving service, "Luobo Kuaipao," has expanded to 16 cities globally, forming strategic partnerships with Uber and Lyft to integrate thousands of autonomous vehicles into the global transportation network [12]. - The cost advantage of Baidu's sixth-generation vehicles is significant, with a 60% reduction in overall vehicle costs compared to the fifth generation, priced at approximately 200,000 yuan, which is notably lower than Waymo's fifth-generation vehicle cost of about 175,000 USD [12]. Group 3: AI-Enabled Tool Applications - Baidu's AI-enabled applications, such as Baidu Wenku (Baidu Library) and Baidu Wangpan (Baidu Cloud), have amassed a large user base, with Wenku reaching 97 million monthly active users and over 40 million paid users as of April 2025 [15]. - Baidu Wangpan's monthly active users reached 154 million in August 2025, with revenue growth driven by AI features at an annual rate of 120% [16]. Group 4: Kunlun Chip Technology - Baidu's self-developed chip capabilities are becoming a differentiating advantage compared to other cloud service providers, ranking third in China's data center chip shipments with 69,000 units in 2024 [20]. - The launch of the self-developed Kunlun P800 cluster in April 2025 allows for the simultaneous training of multiple large models, supporting up to 1,000 clients for model tuning [22].