Baidu's AI Strategy Sparks Market Interest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy BIDU?
Source: seekingalpha
- Earnings Highlights: Baidu reported a non-GAAP EPS of $1.52, beating expectations by $0.12, although revenue of $4.68 billion fell short by $50 million, indicating resilience in profitability but raising concerns over revenue growth.
- AI Chip Unit IPO Outlook: Baidu's AI chip division is set to launch an IPO, which is expected to be a major catalyst for future growth, particularly as AI technology becomes increasingly mainstream, potentially attracting significant investor interest.
- Dividend Potential: Baidu is viewed as a potential dividend giant, with improving profitability and cash flow suggesting future increases in dividend payments, thereby appealing to more long-term investors.
- Market Expectations: The market has low expectations for Baidu's Q4, with EPS anticipated to halve, reflecting challenges in AI monetization; however, successful implementation of AI strategies could lead to significant revenue growth in the future.
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Analyst Views on BIDU
Wall Street analysts forecast BIDU stock price to rise
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 112.010
Low
140.00
Averages
170.39
High
215.00
Current: 112.010
Low
140.00
Averages
170.39
High
215.00
About BIDU
Baidu Inc is a Chinese language Internet search provider. The Company operates its businesses through two segments, Baidu Core segment and iQIYI segment. Baidu Core segment mainly provides search-based, feed-based, and other online marketing services, as well as products and services from the Company’s new artificial intelligence (AI) initiatives, such as display advertisement and based on performance criteria other than cost-per-click, cloud services, smart devices and services, non-marketing consumer-facing services such as membership, and intelligent driving. iQIYI segment produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content, in a variety of formats, including a variety of products and services encompassing online video, online games, online literature, comics and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Future Expansion Plans: Baidu aims to deploy over 1,000 autonomous vehicles in Dubai over the coming years, which could generate significant revenue potential for the company while promoting the adoption of autonomous driving technology.
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See More
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- Local Partnership Advantage: The collaboration with Dubai Taxi Company (DTC) leverages local operational expertise, strengthening Apollo Go's service capabilities in Dubai and ensuring the smooth implementation of driverless ride-hailing services, aligning with Dubai's vision for smart transportation.
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