BIDU
MS
Same old Wall Street, new AI obsession
BofA Securities isn’t changing its tune on Baidu. The bank reiterated a Buy rating and $180 price target, basically saying: yes, the ad business is having a moment, but the AI cloud engine still looks like the part of the car you want to keep your eyes on.
Why the bulls still care
BofA expects Baidu Core’s first-quarter top line and bottom line to land around consensus, even after trimming some expectations for ad revenue. The firm blamed a late Chinese New Year and tougher competition for the softer ad outlook — not exactly the kind of combo platter investors love, but also not a thesis-breaker.
What got the analysts more excited? The AI cloud side. BofA lifted its AI Cloud Infrastructure revenue forecast to 43% year-over-year growth, up from 25% before, thanks to stronger demand for AI computing. Translation: Baidu’s AI business is doing the thing every company in 2026 wants to say it’s doing — actually growing fast.
The investor read-through
For you, the takeaway is pretty straightforward:
- Ads are still wobbling, which keeps a lid on the classic search-and-marketing story.
- AI cloud is doing the heavy lifting, and that’s what’s keeping the bullish case intact.
- Baidu remains a “show me” stock — if AI revenue keeps accelerating, the valuation debate gets a lot friendlier.
Big picture: Baidu is trying to convince the market it’s not just a legacy internet ad company wearing a modern AI hoodie. BofA, at least for now, seems to believe the costume is becoming the real outfit.