Baidu, Inc. (NASDAQ:BIDU) is upgraded to “Outperform” by Macquarie with a price target of $176. The company is shifting focus to diversified revenue streams due to competition pressure, away from its weakening search business. Despite expected decline in core advertising revenue, investors should look to newer growth drivers like AI cloud services and robotaxis.

Baidu’s stock has surged 57% year-to-date, driven by strength in its AI cloud business and growing investor confidence in its Kunlun AI chip. Kunlun chips could make up one-third of the company’s valuation as shipments ramp up, aligning with China’s push for semiconductor self-sufficiency.

Baidu is a Chinese internet giant and AI pioneer, known for investments in AI technology and dominance in the country’s search engine market. While BIDU has potential, other AI stocks may offer greater upside with less risk. For an undervalued AI stock with potential benefits from tariffs and onshoring trend, check out the free report.

Read more at Yahoo Finance: Macquarie Sees “Hidden Value” in Baidu’s (BIDU) AI Pivot, Raises Price Target to $176