From Nasdaq: 2025-04-28 07:05:00

Zacks.com featured Baidu, Tencent Holdings Ltd., and Alibaba in their Analyst Blog, comparing Baidu and Tencent as major players in the Chinese AI market. Both companies are investing heavily in AI, with Baidu dominating search and advertising, while Tencent runs the WeChat super-app and gaming empire. Investors are eyeing these companies for AI growth potential.

Baidu, known as the “Google of China,” is leading the AI race in China with its ERNIE Bot and Apollo autonomous driving unit. Despite facing competition in cloud computing and AI, Baidu’s AI Cloud segment saw a 17% revenue growth in 2024. The company repurchased over $1 billion worth of shares in 2024, signaling confidence in its AI-driven growth initiatives.

Tencent, a diversified tech conglomerate, boasts WeChat and a strong gaming business. The company rapidly enhanced its AI capabilities, unveiling the Hunyuan Turbo S model. Tencent’s financial performance rebounded in 2024, with a return to double-digit revenue growth. The company’s AI integration across platforms is boosting financial performance.

Both Baidu and Tencent stocks outperformed the Internet-Services industry in 2025, with Tencent gaining 15.1% YTD. Baidu trades at a discount with a Value Score of A, while Tencent’s forward 12-month P/S ratio suggests Baidu offers better value. Analysts are optimistic about both stocks’ earnings potential, with Tencent expected to witness solid growth in revenue and EPS.

Tencent emerges as a more compelling investment opportunity due to its diverse revenue streams, growth trajectory, and seamless AI integration. With a Zacks Rank #2 (Buy) compared to Baidu’s Zacks Rank #3 (Hold), Tencent’s favorable earnings outlook positions it for continued value creation in the AI space. Experts believe Tencent is a strong buy for investors.



Read more at Nasdaq: The Zacks Analyst Blog Highlights Baidu, Tencent and Alibaba