Baidu (BIDU) Gets Boost from Upbeat Chinese Market, Analyst Optimism

We recently published 10 Stocks on Fire Ahead of 2026. Baidu, Inc. (NASDAQ:BIDU) is one of the best performers on Tuesday.

Baidu extended its winning streak to a third straight day on Tuesday, adding 4.39 percent to finish at $132.38 apiece, as investor sentiment was bolstered by an upbeat outlook about the Chinese market’s run to its best year since 2017.

Baidu, Inc. (NASDAQ:BIDU) mirrored its Chinese counterparts after the MSCI China Index surged by 28 percent this year, set to outperform by a wide margin the S&P 500, which jumped by only 17.25 percent year-to-date.

Goldman Sachs, for its part, said that it expects the bull run for Chinese stocks to continue, albeit at a slower pace.

“This is reminiscent of an equity cycle transition from hope to growth, where both earnings realization and moderate [valuation] expansion typically supersede strong but volatile re-rating gains to drive returns,” the investment said in its updated market report.

Last month, Capital Economics said that Chinese equities may continue to outperform their US counterparts, having shown resilience to the AI nerves, even as the recent US sell-off created a domino effect in Asian markets.

For its part, Baidu, Inc. (NASDAQ:BIDU) has posted strong growth year-to-date, jumping by as much as 57.70 percent, amid strong investor confidence for its business and the overall artificial intelligence industry.

While we acknowledge the potential of BIDU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.