Update shared on25 Sep 2025
Fair value Increased 16%Analysts have raised Baidu’s price target from $101.76 to $117.66, citing progress in AI, strong Kunlun chip momentum—especially in enterprise cloud and notable customer wins like China Mobile—which are expected to offset lingering online advertising headwinds and support a higher valuation.
Analyst Commentary
- Bullish analysts cite Baidu's recent advancements in artificial intelligence, including securing large customers for AI partnerships and progress on the Kunlun chip.
- The Kunlun chip initiative, particularly its GPU rental business, is expected to drive enterprise cloud segment growth and offset the ongoing weakness in the online advertising business.
- Notable customer wins, such as a deal with China Mobile for Kunlun-powered chips, are seen as material contributors to future valuation.
- Analysts note ongoing monetization headwinds in Baidu’s core online marketing sector due to challenges from transitioning to AI-powered search, resulting in mixed quarterly performance.
- Several believe Baidu’s current valuation remains undemanding, despite near-term revenue pressure from AI transitions in search, supporting ongoing Buy recommendations.
What's in the News
- Baidu and Tencent have sold a record $3.3B in offshore yuan-denominated bonds in 2025, capitalizing on lower borrowing costs versus other markets (Bloomberg, 2025-09-18).
- Baidu and Alibaba are transitioning to using internally developed AI chips to partly replace Nvidia, driven by U.S. export controls that limit Nvidia's offerings in China (The Information, 2025-09-11).
- Baidu’s Apollo Go has expanded globally with major milestones, including securing Dubai’s first autonomous driving trial permit and launching a 50-vehicle fleet there, as well as entering strategic partnerships with Lyft and Uber to deploy autonomous vehicles in Europe, Asia, and the Middle East (Key Developments, 2025-07-15; 2025-08-04; 2025-09-24).
- Baidu continues advancing its AI platform, unveiling upgrades to foundational models (ERNIE X 1.1), new AI coding assistants, and enhancements to its PaddlePaddle deep learning framework, with open-sourcing moves and over 23 million developers now in its ecosystem (Key Developments, 2025-09-09).
- The company completed a $677 million share buyback tranche YTD 2025 under a broader $2.23 billion program, made leadership changes by appointing Haijian He as CFO, and relocated its Hong Kong principal office, while a board meeting in August covered the Q2 and interim 2025 results (Key Developments, 2025-08-20; 2025-08-18; 2025-07-22; 2025-07-01).
Valuation Changes
Summary of Valuation Changes for Baidu
- The Consensus Analyst Price Target has significantly risen from $101.76 to $117.66.
- The Future P/E for Baidu has significantly risen from 1.89x to 2.19x.
- The Consensus Revenue Growth forecasts for Baidu has risen slightly from 4.7% per annum to 4.8% per annum.
Disclaimer
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