Baidu: AI Investments And Chip Spin-Off Could Set The Stage For A Re-Rating
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IWA Research1.85K FollowersFollow5ShareSavePlay(15min)CommentsSummaryBaidu (BIDU) remains a Strong Buy, offering substantial upside thanks to significant AI investments, Apollo Go global expansion, and a fortress balance sheet.BIDU's AI businesses are growing rapidly—AI-powered revenue up 50% YoY and AI Cloud up 21%—despite declines in legacy search and marketing.Politics, Kunlunxin's potential IPO, robust cash reserves, and potential for improved shareholder returns present significant re-rating catalysts.Despite China-specific risks and heavy near-term CAPEX, BIDU trades well below its intrinsic value, severely discounting its high-growth digital assets. JHVEPhoto/iStock Editorial via Getty Images Introduction Last time I covered Baidu (BIDU), I highlighted their excellent financial health, significant AI and robotaxi expansion and reiterated their Strong Buy rating despite already being up ~40% since I first covered them.This article was written byIWA Research1.85K FollowersFollowAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BIDU, BABA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You