From Nasdaq: 2025-06-11 12:08:00

Baidu is seeing growth in its AI Cloud business, with revenue up 42% year over year to RMB6.7 billion. The company’s focus on full-stack AI infrastructure and subscription-based models is driving profitability, with non-GAAP operating margins reaching the mid-teens. Baidu’s multi-year investment in AI is reshaping its long-term growth narrative.

As Baidu competes with Alibaba and Tencent in China’s cloud AI market, it faces challenges from their expansive cloud footprints. Alibaba leads with its Tongyi Qianwen models, while Tencent embeds AI services into vertical applications. Baidu stands out with deep stack integration through its Qianfan platform.

Baidu’s stock performance has lagged behind the industry, with a forward P/E ratio of 8.76. Analysts have lowered earnings estimates for 2025. The stock currently holds a Zacks Rank #4 (Sell). If you’re looking for stocks set to double, consider a little-known satellite-based communications firm highlighted by Zacks’ Research Chief.



Read more at Nasdaq: Baidu Bets Big on AI: Is the Cloud Business Finally Paying Off?