From Financial Modeling Prep: 2025-02-19 05:47:44

Baidu Inc. (NASDAQ: BIDU) is excelling in cloud computing and generative AI, with Mizuho analysts raising their price target to $105 from $95. Cloud revenue jumped 26% YoY in Q4, with generative AI contributing double-digit revenue percentages. ERNIE 4.5 model’s open-source shift is driving adoption, with daily API calls for ERNIE LLM soaring to 1.65 billion in December.

Despite a 7% drop in advertising revenue, Mizuho predicts a rebound in 2025, driven by AI-driven search monetization, macroeconomic stimulus, and cloud expansion. Baidu’s AI and cloud efforts position it for future growth, with analysts viewing AI as a valuable asset at current levels despite recent stock declines. Seasonal softness is expected due to Lunar New Year, but a revenue recovery is anticipated.

Baidu’s focus on generative AI and cloud computing sets the stage for growth, with AI adoption serving as a key driver for revenue and valuation growth. Despite geopolitical concerns, Baidu’s strategic initiatives position it well for future success.



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