Baidu stock surged significantly in 2025. The company climbed 4.2% in the past week and nearly 50% year-to-date. Investor optimism surrounding its artificial intelligence initiatives and strong position in China's search and cloud markets drives this momentum.
This positive performance faces volatility. Concerns over regulatory risks and the broader tech crackdown in China create a volatile trading environment.
A recent valuation analysis suggests the market's enthusiasm for Baidu's AI prospects may have pushed its share price too far. A Discounted Cash Flow (DCF) model estimates the company's intrinsic value at $100.67 per share, implying the stock is currently overvalued.
The DCF model bases this estimate on projections of future cash flow. These cash flows are expected to recover and grow in the coming years.