Deutsche Bank Upgrades Baidu to ’Buy’ on AI-Driven Growth Prospects
Deutsche Bank analyst LEO Chiang has upgraded Baidu to 'Buy' with a $156 price target, signaling 23% upside potential. The Chinese tech giant's stock has already surged 51% year-to-date as it transitions beyond search into AI leadership.
Baidu now operates four key AI divisions: its cloud unit offering cost-efficient full-stack systems, the Apollo Go robotaxi program at global scale, generative AI-powered search, and Kunlunxin AI chips positioned to capitalize on booming hardware demand. These segments are becoming the company's primary revenue drivers.
Near-term headwinds persist, with advertising slowdowns projected to cause a 3% revenue decline in FY2025. However, the bank views Baidu's AI moat as fundamentally undervalued, particularly its chip division's exposure to escalating enterprise AI infrastructure spending.
