Baidu stock down 17% due to US-China tensions, facing revenue challenges and competition in AI.

From Nasdaq: 2025-04-09 10:12:00

Baidu, Inc. (BIDU) stock has dropped 17% in the past month due to escalating tensions between the U.S. and China. The company faces challenges in its core revenue and increased competition in the market, despite advancements in AI technology.

Baidu’s AI Cloud revenue has grown by 26% year over year, with generative AI-related revenue tripling in 2024. The company has a diverse customer base and is expanding its ERNIE ecosystem rapidly, attracting developers and businesses.

Baidu’s Apollo Go robotaxi service provided over 1.1 million rides in Q4 2024 and is expanding both domestically and internationally. The company has a strong financial foundation with a net cash position and is pursuing an asset-light expansion strategy.

Baidu faces competition in cloud computing and AI from Alibaba Cloud and Tencent Cloud in China. The company is also competing with startups like Zhipu AI and other tech giants in the digital media sector, signaling a competitive landscape.

Despite recent challenges, Baidu presents a compelling long-term investment opportunity with its advancements in AI, cloud, and autonomous driving. Analysts are optimistic about the stock, with a potential 41.7% upside from its current price, making it an attractive option for investors.



Read more at Nasdaq: Baidu Stock Down 17% YTD: Is It a Smart AI Buy on the Dip?