Baidu is often called “China’s Google” and is a major AI research and development player. The Beijing-based $US30bn company has an advanced AI division, Baidu AI Cloud, and has developed the Ernie AI model, which is a competitor to OpenAI’s ChatGPT. However, in a market that’s tending to buy the strength, BIDU has failed to follow BABA and TCEHY. In November, BIDU posted a 3% annual drop in third-quarter revenue, although it did beat market expectations amid AI cloud growth. Revenue came in at $US4.78 billion for the quarter ending on Sept. 30, and Net profit for the period rose by 14% to $1.09 billion. An ok set of numbers but its path moving forward is not as clear as BABA and TCEHY.
- We like the risk/reward toward BIDU as an aggressive play if it experiences a “washout” sell-off below $US77, however we do have a clear preference for sticking with the strength in Tech.
MM is neutral towards BIDU
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