Baidu shares down after releasing ERNIE language models, but expected to benefit with long-term upside.

From Yahoo Finance: 2025-07-01 10:44:00

Baidu (BIDU) shares are down 19% from their year-to-date high after making its ERNIE large language models open source, outperforming DeepSeek’s V3 model. This move is expected to benefit BIDU significantly and attract global developers to build on its architecture, potentially unlocking long-term monetization and valuation upside.

Analyst Miranda Zhuang recommends owning BIDU shares for the long term due to the company’s launch of fully autonomous vehicle operations in China and commitment to expanding robotaxi services internationally. Integrating artificial intelligence is expected to drive revenue growth and reinvigorate Baidu’s advertising business, with a price target of $100 indicating an 18% potential upside.

Wall Street firms anticipate BIDU shares extending gains as the company taps into artificial intelligence for lower costs and higher returns. The consensus rating on Baidu stock is currently at a “Moderate Buy,” with a mean target of around $105, implying a potential upside of 22% from current levels.

Read more: This Chinese Stock Just Launched Something That Could Be Even Bigger and More Powerful Than DeepSeek