10 Cheapest Stocks to Buy On Robinhood

5. Baidu, Inc. (NASDAQ:BIDU)

Market Cap: $28 billion

FWD PE Ratio: 7.87

Average Price Target Upside: 43.13%

Baidu, Inc. (NASDAQ:BIDU) is a leading Chinese technology company that operates the largest internet search engine in China. Most of its revenue comes from advertising and search-related services. The company also offers online marketing solutions, such as pay-for-performance and auction-based services, while expanding its focus on AI, especially in autonomous driving technology.

Baidu’s (NASDAQ:BIDU) shares experienced a sell-off on November 21 after it missed its earnings estimates and revenue declined slightly. However, the company is showing promise in its AI segment. Its AI Cloud revenue grew 11% to RMB 4.9 billion, driven by generative AI-related services, which accounted for 11% of AI Cloud revenue.

The company highlighted advancements in its ERNIE AI models, including improved efficiency and new lightweight offerings like Speed Pro and Lite Pro. Daily API calls for ERNIE surged to 1.5 billion in November from 600 million in August, reflecting strong adoption.

Consumer engagement with generative AI features increased, with 70% of Baidu App’s monthly users interacting with such content. Wenku’s AI-enabled features saw its monthly active users exceed 50 million, contributing to a 23% rise in subscription revenue. Baidu also expanded partnerships for ERNIE agents across industries, with notable collaborations including BYD and Samsung.

We also mentioned Baidu’s (NASDAQ:BIDU) latest AI-related developments in our 10 Emerging AI Stocks You Should Keep on Your Radar report. Here is an excerpt from the article:

“On November 18, it was announced that Baidu Smart Cloud has launched initiatives to advance artificial intelligence through partnerships and infrastructure development. In Wuhan’s Qiaokou District, it collaborated with local authorities to unveil the Hanjiangwan Artificial Intelligence Industrial Park and establish the Baidu Smart Cloud (Wuhan) New Quality Productivity Industrial Base. This project will focus on AI innovation, data annotation, and talent training.

In Neijiang High-tech Zone, Baidu (NASDAQ:BIDU) signed a strategic agreement to develop a digital intelligence hub centered on data supply, model innovation, and intelligent applications. These efforts aim to boost the digital economy and foster industrial growth in Southwest China.

The original press release was in Chinese, so there may be minor discrepancies due to translation.”