10 Best Emerging Markets Stocks to Buy According to Hedge Funds

6. Baidu, Inc. (NASDAQ:BIDU)

Number of Hedge Fund Holders: 50

​​Baidu, Inc. (NASDAQ:BIDU) is a Chinese multinational technology company specializing in internet-related services and AI. Headquartered in Beijing, BIDU operates China’s leading search engine, offering services such as web search, news aggregation, image and video searches, and a user-generated encyclopedia known as Baidu Baike. Beyond its core search business, the company has diversified into AI-driven initiatives, including cloud computing, autonomous driving technology, and conversational AI models like Ernie.

Baidu, Inc. (NASDAQ:BIDU) reported modest YoY growth in core revenue in the latest Q4 2024, reaching RMB 27.7 billion. The AI Cloud division was a standout, with revenue rising 26% compared to the previous year, helping to counterbalance weaker performance in the online marketing segment. Its AI model, ERNIE, continued to gain traction, with daily API usage costs hitting 1.65 billion in December and external API costs surging 178% from the previous quarter. BIDU also made progress in its search business, with AI-generated content now appearing in 22% of search results. In autonomous driving, the Apollo Go service delivered roughly 1.1 million rides in Q4, up 36% YoY, and achieved full driverless operation across the country.

Looking ahead, Baidu, Inc. (NASDAQ:BIDU) anticipates a gradual recovery in advertising revenue, expecting the first half of 2025 to outperform the previous quarter, with further gains in the second half. The company also plans to speed up its share repurchase efforts, having already bought back over $1 billion in stock since the start of 2024. Despite recent short-term sluggishness, the accelerating guidance and exceptional growth momentum in AI makes BIDU one of the best emerging markets stocks to consider.