Baidu, Inc. (NASDAQ:BIDU) was upgraded by JP Morgan to “Overweight” with a new price target of $188.0. The firm sees AI and cloud as the key growth drivers for BIDU. Analyst Alex Yao believes the market is underestimating Baidu’s cloud revenue growth, which may accelerate to 61% in 2026.

Yao noted that Baidu’s Kunlun AI chips are driving this growth, with sales expected to surge six-fold. The analyst highlighted the intense demand for AI compute in China and the increasing preference for local providers by hyperscalers. Baidu’s cloud revenue is projected to grow 61% in 2026, up from 23% in 2025.

Baidu, Inc. (NASDAQ:BIDU) is a prominent Chinese internet giant and AI innovator, known for its AI investments and dominant search engine status in China. While BIDU presents investment potential, other AI stocks may offer greater upside with less downside risk. Check out our report on the best short-term AI stock for more information.

Read more at Yahoo Finance: AI Chips and Cloud Now Driving the Story