Bond.az - aidu" class="internal-tag-link">Baidu Inc. (NASDAQ:BIDU), China's leading search engine and AI company, is at a crossroads as analysts evaluate its transition from online advertising to AI-driven services.
Over the past six months, analysts have given divergent ratings. One firm has an Equal Weight rating with a $128 price target, while another issued a Buy rating with a $181 target.
Baidu's traditional online marketing business faces headwinds, with analysts projecting a 6% decline in Baidu Core revenue and a 15.6% drop in online marketing revenue year-over-year.
Total company revenue was RMB134,598 million in FY2023, falling to RMB133,125 million in FY2024. Analysts project further contraction to RMB129,025 million in FY2025.
Baidu's AI infrastructure revenue grew 30% year-over-year in 2025, with expectations for accelerated growth in 2026.
The anticipated IPO of Kunlun, Baidu's chip subsidiary, could unlock value, with analysts incorporating its potential into their assessments.
