BOCOM International maintains a Buy rating for Baidu, Inc. due to an expected earnings inflection point in the second half of 2026, driven by the growth of AI new businesses and stabilization in traditional advertising revenue. The broker believes that the market has not fully recognized the potential of Baidu's AI transformation, which is projected to significantly contribute to revenue growth in the coming years. The recent decline in share price presents a better buying opportunity, with near-term catalysts anticipated.
