From Nasdaq: 2025-06-09 11:53:00

Baidu, Inc. (BIDU) is currently trading at a discount compared to its industry and historical metrics, with a forward P/E ratio below its five-year average. Meanwhile, its peers Alibaba (BABA) and Tencent (TCEHY) have higher forward P/E ratios. Baidu’s stock has only gained 1.8% this year, while its peers have surged.

Baidu’s growth opportunities include its AI Cloud business, which saw a 42% revenue increase in the first quarter of 2025. Its autonomous driving business, Apollo Go, provided 1.4 million rides in the same period. However, challenges include monetization uncertainties, AI chip supply constraints, and rising competition in the AI cloud and AI search sectors.

Earnings estimates for Baidu have decreased recently, reflecting analysts’ concerns about the company’s prospects. Despite trading at a discount, Baidu faces risks in monetizing AI-driven businesses and competition from peers. With uncertainties around AI chip restrictions and declining R&D intensity, analysts suggest caution with Baidu stock and rate it a Zacks Rank #4 (Sell).

Zacks Investment Research recommends a semiconductor stock with significant growth potential in AI, Machine Learning, and IoT markets. Global semiconductor manufacturing is projected to grow from $452 billion in 2021 to $803 billion by 2028. Investors can access the stock recommendation for free and download the 7 Best Stocks for the Next 30 Days report from Zacks.



Read more at Nasdaq: Baidu Trading at a Discount at 8.59X: Should You Buy the Stock?