Baidu, Inc. (NASDAQ:BEGINNING) is one of the 10 AI stocks to keep on your radar. On February 4, Tiger Securities US analyst Bo Pei raised their price target on the stock to $150.00 (up from $135.00) while maintaining a “Buy” rating. The company is bullish on Baidu, especially because of its optional AI ecosystem and monetization catalysts.

The company believes Baidu will continue to unlock shareholder value following the recently announced IPO of its AI chip subsidiary Kunlunxin. He also opines that Baidu Cloud is well-positioned to benefit from the accelerated adoption of AI in China, and that its robotaxi business may see a revaluation as investors focus on transitions from AI infrastructure to downstream applications.

For the fourth quarter, the company’s revenue estimates remain unchanged. However, it has modestly trimmed its EBIT and non-GAAP EBITDA as assumptions about D&A and SBC are refined. Baidu has been actively exploring ways to capture shareholder value, with the most prominent example being its decision to spin off and seek an independent listing of its AI chip subsidiary Kunlunxin.

US Tiger Securities highlighted how Baidu has confidentially filed for a Hong Kong IPO and currently owns 60%. The company noted that it intends to maintain majority control after the IPO.

Strategically, we view this move as a positive step towards unlocking hidden value while providing Kunlunxin with independent access to capital to support continued AI chip development. We assign a valuation of RMB 100 billion to Kunlunxin, implying 15.4x EV/sales of our forecasted 2026 revenue. We view this multiple as conservative relative to listed peers such as Cambricon Technologies, which currently trades at approximately 31.5x EV/sales.

While the firm remains wary of BIDU’s near-term revenue and earnings growth trajectory, it believes the stock is increasingly tied to its long-term AI optionality. The company sees several catalysts supporting it, particularly in robotaxi and cloud AI.

Copyright: mikkolem / 123RF Stock Photo

Baidu, Inc. (NASDAQ:BIDU) is a Chinese Internet giant and AI pioneer known for its notable investments in artificial intelligence technology and its position as the country’s dominant search engine.

While we recognize BIDU’s potential as an investment, we believe some AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.