12 Most Promising AI Stocks According to Wall Street Analysts

8) Baidu, Inc. (NASDAQ:BIDU)

Average Upside Potential: ~26.7%

Number of Hedge Fund Holders: 54

Baidu, Inc. (NASDAQ:BIDU) is involved in the AI industry as it leverages expertise in artificial intelligence to fuel innovations throughout a wide range of industries. Citi analysts sustained a “Buy” rating on the company’s shares. The firm’s analyst Alicia Yap foresees a potential near-term catalyst and highlights the company’s ongoing transformation. Looking ahead into Q1 2025 and beyond, Yap mentioned that while Baidu, Inc. (NASDAQ:BIDU)’s advertising revenue growth depends on the broader economic climate and advertiser sentiment, its strategic pivot towards AI-enhanced search might be reaching a turning point and has a potential for monetization.

The company’s future prospects remain tied to its AI strategy. It continues to leverage its vast data ecosystem and relationships to fuel AI adoption throughout its services. As AI content adoption has been increasing, the pressure on monetization is expected to ease, potentially resulting in an inflection point in Baidu, Inc. (NASDAQ:BIDU)’s return on invested capital (ROIC). Therefore, the focus on core strengths in search and AI Cloud has the potential to yield better returns as compared to earlier investments in non-core areas.

By integrating AI throughout its ecosystem, such as search, cloud services, and autonomous driving, Baidu, Inc. (NASDAQ:BIDU) has been creating a comprehensive AI platform capable of driving significant growth. Its vast data resources and established market position in China offer a robust foundation for AI development and deployment.