Baidu’s analyst fair value estimate increased 16% to $176.93 as JPMorgan and Goldman Sachs raised price targets, citing stronger valuations for the AI Cloud and Kunlun chip spinoff.
- AI-empowered segments are projected to reach 40% of total revenue, supported by a 50% year-over-year growth rate and a higher 23.23x future P/E multiple.
- Operational momentum is led by Apollo Go’s 148% ride growth and Ernie AI reaching 200 million monthly active users.
- Core search advertising declined 15% in Q2 2025, highlighting execution risks if new AI initiatives do not scale fast enough to offset legacy business headwinds.