From Nasdaq: 2025-05-27 12:45:00

Baidu and Alibaba, major Chinese tech companies, are heavily investing in AI services. Baidu’s revenue growth is driven by AI Cloud, while Alibaba sees success in its Cloud and AI segments. Both companies face challenges in online advertising and competition. Alibaba’s diversified business model gives it an edge, but Baidu is focusing on AI-driven growth.

Baidu’s aggressive push into AI has led to promising results, with AI Cloud representing a significant portion of revenue. Despite challenges like negative free cash flow and competition, Baidu remains confident in its AI capabilities and growth potential.

Alibaba’s comeback is fueled by strong Cloud and AI segments, with significant revenue growth. The company is making progress in monetization and capital allocation, despite facing competition and rising costs. Alibaba’s diversified business model and international exposure give it a secure foundation for growth.

Baidu’s shares have struggled this year, trading at a lower valuation compared to Alibaba. Analysts expect Baidu’s revenue and EPS to grow modestly, while Alibaba is projected to see stronger growth and profitability, justifying its premium valuation.

Both Baidu and Alibaba are positioned as leaders in AI, but with different strategies. Baidu’s focus on autonomous driving and cloud services is high-risk, high-reward, while Alibaba’s diversified model and international exposure provide a solid foundation for growth. Alibaba holds an edge due to its consistent revenue generation and growth opportunities.

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Read more at Nasdaq: Baidu vs. Alibaba: Which Chinese AI Stock Is the Better Investment Now?