15 AI Stocks That Are On Sale

1. Baidu, Inc. (NASDAQ:BIDU)

Number of Hedge Fund Holders: 42

Expected Earnings Growth: 0.3%

P/E Ratio: 9.3

Baidu, Inc. (NASDAQ:BIDU) is a Chinese tech company operating in the internet services and AI spaces. It is a market leader in China’s search engine market and offers a wide range of internet services, such as the Baidu App and iQIYI.

Chinese stocks like Baidu, Inc. (NASDAQ:BIDU) have been performing incredibly well in light of China’s central bank’s announcement of stimulative measures, which include lowering interest rates and bank reserve requirements alongside the amount of money consumers are now required to put down on housing. As a result, Baidu, Inc. (NASDAQ:BIDU) has been rallying and is up by 20.8% just this past week.

Alongside this, another factor that has been aiding Baidu, Inc.’s (NASDAQ:BIDU) growth is the company’s recent presentation at an AI event this week. Being one of China’s tech giants in charge of developing its own LLMs for generative AI, Baidu, Inc.’s (NASDAQ:BIDU) presentation at the Yunzhi AI summit has also resulted in greater optimism surrounding the stock.

At the summit, Baidu, Inc. (NASDAQ:BIDU) unveiled its Ernie AI models on the Qianfan Foundation Model Platform 3.0. Many AI investors are thus now following this stock very closely to see how much further it can grow. Considering all this, the stock’s current valuation seems to be quite cheap.

At the end of the second quarter, 42 hedge funds were long Baidu, Inc. (NASDAQ:BIDU) with a total stake value of $1.1 billion.

While BIDU is an exceptional investment, we believe that AI stocks hold promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BIDU and which trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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