BIDU - Baidu: Buy The AI Story Without Paying For It
2024-04-17 20:07:37 ET
Summary
- Baidu has made further headway into developing and monetizing AI.
- Yet, the market continues to ignore its growth potential.
- At current valuations, investors have the odds stacked in their favor.
Baidu's ( BIDU ) transition from China's leading search engine company to artificial intelligence ((AI)) leader has only gained traction since I last covered the stock (see Baidu: Poised For Upside As AI Monetization Begins ). The good news is that the company has also begun monetizing its AI capabilities; Q4 2023 results showed the company had already unlocked ~CNY 656m (or ~$100m) of AI revenue, with guidance outlining a path to further ramping up its AI-related income this year. The bar isn't all that demanding either, given Baidu's growing first-mover advantage, helped by its presence across the full AI stack, as well as the breadth of untapped synergies within its existing ecosystem. Baidu's core revenue base isn't shrinking either, as cloud growth remains strong, even with ads evolving into more of a 'GDP-plus' business....
Baidu: Buy The AI Story Without Paying For It