๐ Morgan Stanley just raised its sum-of-the-parts valuation for $BIDU (Baidu, Inc.-ADR) to $ 220, reflecting strong growth in AI cloud and in-house AI chips ๐ก
While core ad revenues may remain under pressure โ as AI search ads (64 % of all views) still monetize less effectively โ Baiduโs AI-powered and agent-driven ads are gaining traction and now make up about 16 % of total ad revenue ๐
In the AI cloud segment, partnerships with $AAPL (Apple) and $0941.HK (China Mobile) (ยฅ1 billion deal), along with the rollout of Baiduโs Kunlun AI chips, are expected to drive ~32 % YoY growth in FY 2025 โ๏ธ๐ค
๐ฑ The Apple partnership focuses on integrating Baiduโs generative AI into Apple devices sold in China, replacing Western AI tools restricted there.
๐ก The China Mobile deal centers on building AI-powered cloud infrastructure and data solutions, leveraging Baiduโs Kunlun chips for faster, energy-efficient computing.
Meanwhile, Baiduโs Apollo Go robotaxi service has completed 2.2 million driverless rides across 16 cities, expanding into the Middle East, Europe, Southeast Asia, and Australia ๐๐
With the current share price around $ 144, Morgan Stanleyโs $ 220 valuation implies an upside of roughly 52 % ๐
๐ฌ Baidu is the largest position in my portfolio โ I believe itโs well-positioned to benefit from:
1๏ธโฃ Rapid AI cloud adoption
2๏ธโฃ Strong chip ecosystem
3๏ธโฃ Autonomous mobility expansion
๐ What do you think โ is Baidu still undervalued in the global AI race?
๐ If you enjoy my posts, follow me for more market insights and analysis ๐โจ
$9888.HK (Baidu Inc)... Show More
๐ If you enjoy my posts, follow me for more market insights and analysis ๐โจ... Show More
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