Baidu (BIDU) Stock Target Raised to $150 as Investors Reassess AI Growth

Baidu, Inc. (NASDAQ:BIDU) is one of the Top AI Stocks in the Spotlight on Wall Street. On September 26, Bernstein SocGen Group analyst Boris Van raised the price target on the stock to $150.00 (from $90.00) while maintaining a Market Perform rating.

The firm noted that Baidu’s stock has seen a rerating driven by the company’s positive attitude toward money management and plans to unlock value within the group. Baidu has mentioned that it may consider actions such as listing its Robotaxi business and other new ventures.

The company also wishes to categorize its AI businesses so that investors can better assess which areas are growing.  Moreover, investors have been frustrated at the company for not rewarding them sufficiently since quite some time. Baidu has signaled that it’s going to take action soon.

This alone is enough for investors to rethink what the stock might be worth.

“Baidu’s stock has seen a re-rating of late driven by a more positive tone from the company around capital structure and unlocking value within the Group. Specifically the company talked about exploring capital actions (ie listing) of their Robotaxi and other new ventures. They also talked about re-categorizing their AI businesses to give a clearer read on the AI growth parts. Acknowledging long held investor angst about lack of shareholder returns and signaling taking action seems enough, for the moment, to get investors to think about what Baidu’s various business could be worth. Under current market conditions, we put this value for Baidu at ~US$150/share, with US$100 attributed to the core income generating businesses, and US$50 in value from the new business ventures e.g. Robotaxi and its Net Cash/investments position.”

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.

While we acknowledge the potential of BIDU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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