Baidu (BIDU) Gets Big Upgrade from JPMorgan: AI Chips and Cloud Now Driving the Story

4 days ago 6

Ghazal Ahmed

Wed, November 26, 2025 astatine 3:43 AM CST 2 min read

Baidu, Inc. (NASDAQ:BIDU) is 1 of the Hot AI Stocks to Keep connected Your Radar. On November 24, JP Morgan upgraded the banal to “Overweight” from Neutral and raised its terms people to $188.0 from $110.0. The steadfast is optimistic connected BIDU, noting however AI and unreality are changing the communicative and becoming superior maturation engines and worth drivers for BIDU.

According to expert Alex Yao, marketplace is presently underestimating the modulation and that investors should bargain into the banal present to seizure the valuation rerating. Moreover, helium noted that Baidu’s unreality gross maturation whitethorn accelerate to astir 61% successful 2026, arsenic compared to 23% successful 2025. This acceleration is driven by a surge successful income of Kunlun AI chips.

” With our estimates showing Baidu’s unreality gross maturation accelerating to ~61% successful 2026 (vs. ~23% successful 2025) acknowledgment to a 6x surge successful Kunlun spot sales, and a SOTP valuation model attributing ~$34B to unreality (~53% of our people price), we judge the marketplace is underestimating this transformation.”

The expert further noted however home request for AI compute successful China remains aggravated and that hyperscalers are sourcing from section providers adjacent more. That said, it believes that the Kunlun AI chips is champion positioned and anticipates spot income to summation six-fold.

“In addition, we expect GPU compute gross to support triple-digit maturation fixed endeavor mania for exemplary training, fine-tuning and inference. With specified infrastructure momentum, we expect Baidu unreality gross maturation of ~61% successful 2026, accelerating from ~23% successful 2025. This cardinal displacement supports our determination to a dedicated SOTP valuation. We worth Baidu unreality astatine ~$34B oregon ~$100 per share, based connected 6x 2026E gross for unreality ex-Kunlun spot income and 15x 2026E gross for Kunlun chip.”

Baidu, Inc. (NASDAQ:BIDU) is simply a Chinese net elephantine and AI pioneer, known for its noteworthy investments successful artificial quality exertion and its presumption arsenic the ascendant hunt motor wrong the country.

While we admit the imaginable of BIDU arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 10 AI Stocks successful Focus connected Wall Street and 10 Hot AI Stocks to Keep connected Your Radar

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