Baidu ($BIDU): China’s Google Is Ready to Break OutIf you haven`t bought BIDU on the previous dip:
What you need to know now:
1. Baidu = The Google of China
Baidu dominates China’s search engine market, holding over 60% market share, making it the Google equivalent in the world's second-largest economy.
Its advertising business is deeply entrenched in Chinese internet infrastructure.
As digital ad spending rebounds in China, Baidu’s core business benefits directly.
2. AI and Autonomous Driving Moonshots
Baidu is China’s national AI champion, pouring billions into next-gen technologies:
Ernie Bot (Baidu’s ChatGPT competitor) is now integrated across its ecosystem and enterprise offerings.
Apollo Go, Baidu’s autonomous driving platform, already operates robo-taxis in multiple Chinese cities and has received licenses for fully driverless operations.
Baidu also provides AI cloud services, competing with Alibaba Cloud and Huawei.
With the Chinese government pushing AI self-sufficiency, Baidu is one of the biggest beneficiaries.
3. Cheap Valuation with High-Tech Exposure
Baidu trades at a forward P/E under 10 and price-to-sales under 2, despite being a major player in AI, cloud, and mobility.
That’s a fraction of what US tech firms with similar ambitions (like Alphabet or Tesla) are valued at.
Over $25 billion in cash and investments on the balance sheet adds a margin of safety.
4. Government Support & Stimulus Tailwinds
The Chinese government is pivoting back toward supporting tech innovation, especially in AI, after years of regulatory crackdowns.
Baidu is aligned with national AI and autonomous driving goals.
If the government ramps up fiscal stimulus, especially in infrastructure and technology, Baidu will likely benefit.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
