5 Best AI Stocks To Buy Now

3. Baidu, Inc. (NASDAQ:BIDU)

Market Capitalization as of September 5: $48.142 billion

Number of Hedge Fund Holders: 45

Baidu, Inc. (NASDAQ:BIDU) offers internet search services in China, operating through  Baidu Core and iQIYI segments. What makes BIDU one of the best AI stocks to buy is its diversified portfolio. Baidu AI Cloud focuses on cloud computing, big data, and AI services, providing stable cloud servers, cloud hosts, cloud storage, and CDN. Baidu Research is also working on future-first fundamental research in artificial intelligence. The company presented Q2 2022 results that exceeded analyst consensus expectations on both top-line and earnings.

On August 31, Citi analyst Alicia Yap maintained a Buy rating on Baidu, Inc. (NASDAQ:BIDU) but lowered the price target on the stock to $204 from $223. The company posted a “solid” Q2, and the analyst believes Baidu, Inc. (NASDAQ:BIDU) remains well positioned to “ride on digitalization of the industrial internet, city urbanization initiatives and carbon neutral target”.

According to Insider Monkey’s data, 45 hedge funds were long Baidu, Inc. (NASDAQ:BIDU) at the end of June 2022, compared to 47 funds in the last quarter. John W. Rogers’ Ariel Investments is the biggest stakeholder of the company, with 2.6 million shares worth $392.7 million. 

Here is what Horos Asset Management has to say about Baidu, Inc. (NASDAQ:BIDU) in its Q1 2022 investor letter:

“Although the initial reaction of the Chinese government was passive, it seems that the blacklist published by the SEC, which already includes companies as important as the technology giant Baidu, has shaken things up. Thus, at the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information.

While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. In this regard, some companies are already listed on the Hong Kong stock exchange, as is the case of the three major technology companies (Alibaba Group, Tencent Holdings and Baidu).”