Baidu (BIDU, 9888.HK) is a Chinese technology company specializing in internet services and artificial intelligence development. Founded in 2000 as a search engine, Baidu has diversified its business and is currently transforming into a leading provider of AI solutions in China.
Investment attractiveness factors:
· China’s macroeconomic data for February and the first indicators for March 2026 suggest that strong demand in the Chinese economy remains intact. Data on trade, business activity, inflation, industrial production, fixed asset investment, and retail sales all came in above expectations. This increases the likelihood of strong demand for Baidu’s services from both Chinese consumers and businesses and could lead to an upward revaluation of the company.
· The company continues to successfully scale its AI segment. As a provider of cloud infrastructure for AI, Baidu is one of the main beneficiaries of the growing demand for AI computing in the Chinese market. The recent increase in cloud service prices by major Chinese tech companies could lead to a recovery in Baidu’s margins, while preparations for the IPO of its AI chip development division Kunlun remain a potential catalyst for increasing the parent company’s valuation. An additional growth driver for Baidu’s shares is the potential recovery of its advertising business. By the end of 2025, the share of AI marketing increased by 300% year-over-year and accounted for 30% of the company’s core business revenue compared to 10% the previous year.
· The technical picture also supports the potential upside of Baidu shares. Recently, BIDU quotes moved below two standard deviations of the Bollinger Bands. At the same time, the stock rebounded from the horizontal support level at $100, which has been forming since autumn last year. The current RSI and stochastic RSI have entered the oversold zone, which historically indicates a high probability of continued growth in the short term. Additional support may come from a potential recovery in the Hang Seng Index, which has reached the lower boundary of an upward trend formed since the beginning of 2024. Target price: $150.