10 Ridiculously Cheap Stocks to Buy Right Now

2. Baidu, Inc. (NASDAQ:BIDU)

Analyst Upside as of November 25, 2024: 43%

Forward P/E as of November 25, 2024: 7.81

Market Capitalization as of November 25, 2024: $27.6 Billion

Baidu, Inc. (NASDAQ:BIDU) ranks second on our list of considerably cheap stocks to buy right now. The Chinese multinational technology company specializes in providing internet services and artificial intelligence. The company operates the largest internet search engine in China and brings most of its revenue from advertising and search.

The company is placing significant bets on AI to fuel its growth strategy. Baidu’s (NASDAQ:BIDU) core revenue reached RMB26.7 billion in the second quarter of 2024, driven by tremendous growth in its AI cloud business. During the quarter, the company invested significantly in its cloud and AI business to ensure the technology is accessible to all. For instance, in June BIDU unveiled ERNIE 4.0, an AI chatbot, capable of delivering high-quality solutions to AI use cases.

As for search, the company has been testing solutions to advance its search capabilities using AI. As of Q2 2024, 18% of search results consist of generated content, up from 11% in May. AI-generated content is able to deliver more accurate and specific results, meeting the needs of users more efficiently.

Ariel Investments’ Ariel Global Fund stated the following regarding Baidu, Inc. (NASDAQ:BIDU) in its first quarter 2024 investor letter:

“Alternatively, several positions weighed on performance. China’s internet search and online community leader, Baidu, Inc. traded lower alongside Chinese equities as intensifying problems in China weighed on investor sentiment during the period. The company continues to invest heavily in Artificial Intelligence (AI) and recently launched its generative AI, Ernie Bot, aimed at rivaling Open AI’s ChatGPT. While monetization of the new technology is largely dependent on regulatory review, we think Baidu should continue to experience margin improvement with the ongoing implementation of efficiency and profitability initiatives. While some investors remain on the sidelines due to uncertainty surrounding China’s economic growth, government regulations, and the political rhetoric towards Taiwan, we remain enthusiastic about Baidu’s longer-term opportunity for revenue growth and margin expansion across internet search, cloud, autonomous driving, artificial intelligence and online video.”