Benchmark reiterated a Buy rating and $215 price target on Baidu (NASDAQ:BIDU) following the company's first-quarter 2026 results. The stock currently trades at $137.71, representing 83% of its 52-week high, and has delivered a strong 54% return over the past year.
Baidu's general business returned to positive growth in Q1 2026, with AI-driven businesses contributing more than 50% of total revenue for the first time, according to Benchmark analyst Fawne Jiang.
The firm expects the trend to continue into fiscal 2026, supported by accelerating industry-wide AI adoption and Baidu's positioning as a full-stack service provider.
Benchmark believes Baidu AI Cloud is entering a phase of structural margin improvement, driven by a higher-margin mix of GPU Cloud and AI applications, alongside ongoing operating expense optimization and stronger discipline.
The firm cited asset value unlocking as a rerating catalyst, including the upcoming Kunlun spin-off, Apollo Go global scaling, Hong Kong dual-primary listing plans, and continued shareholder returns.
