Goldman Sachs Lifts Baidu (BIDU) Price Target to $154 on AI and Cloud Growth

Baidu, Inc. (NASDAQ:BIDU) is one of the  Buzzing AI Stocks on Wall Street. On September 19, Goldman Sachs analyst Lincoln Kong raised the price target on the stock to $154.00 (from $90.00) while maintaining a Buy rating.

The firm highlighted how Baidu’s decline trajectory is well understood by the market and already reflected in street earnings estimates. Q3 2025 is likely to witness the steepest drop in Baidu’s core profits.

Nevertheless, analysts believe that investor focus is now shifting to Baidu’s fast growing non-search businesses, particularly cloud and AI. The firm also holds “constructive views” on Apollo Robotaxi, citing faster rollout, lower costs, and global expansion potential.

“We reassess the fast growing non-search business to factor in the AI accelerants. We estimate non-search revenue will rise to 54% of Baidu core revenue, with cloud accounting for 36% by 2027. Baidu cloud’s core competency lies in its full stack capabilities from chips, platforms to AI empowered software applications. We raise the target multiple to 5X P/S to reflect the growth potential and to align with the peer group. We also have more constructive views on Apollo Robotaxi on its faster fleet rollout, higher industry TAM (see here), and better profitability of the lower BOM cost RT6 car, as well as its international expansion potential. Finally, with the company’s more proactive measures/views on enhancing shareholder buybacks and dividends, we now reflect the full amount of net cash/long term investment in the SOTP valuation.”

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

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