Citi maintains a Buy rating on Baidu, Inc. due to its leadership in the emerging 'Agentic AI' era, as highlighted by CEO Robin Li at the Baidu Create 2026 conference. The company is transitioning to a model that emphasizes applications and agents, with a strong full-stack AI system that includes proprietary chips and AI cloud services. Citi's valuation suggests significant growth potential, despite expectations of declining operating profit from its core advertising business.
