On May 22, Bank of America Securities analyst Miranda Zhuang reiterated a Buy rating on Baidu Inc. (NASDAQ:BIDU). However, she reduced the price target to $100 from $104 due to lower profit estimates for the ad business.Bofa Reiterates Buy on Baidu (BIDU), Lowers PT

A modern internet space with a person using Baidu services on a laptop.

She also notes that its robotaxi division has achieved fully autonomous operations in Mainland China, which has already become a highly competitive market. Additionally, the company has its eyes set on international markets, and a successful entry into more overseas markets will result in significant growth, according to the analyst.

The analyst also touched upon the company’s advertising business, which has recently been under revenue growth pressure. However, she believes Baidu’s AI dominance should enable it to reinvigorate growth in this segment through its core AI-powered search business or by innovating ad formats and enhancing user experience. To top it all, the company’s strong financial position, share buybacks, and relatively cheaper valuation support her optimistic view.

Baidu Inc. (NASDAQ:BIDU) is a Chinese technology company specializing in Internet services and AI. While its search engine has a dominant market position, it has diversified into several high-growth areas, such as autonomous driving and smart consumer electronics.

While we acknowledge the potential of BIDU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BIDU and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.

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