1. Baidu shares surged over 65% in 2025 but slipped 2% recently. 2. Analysts suggest Alibaba is a better investment than Baidu currently. 3. Baidu's AI chip business shows promise amid overall search revenue challenges. 4. Intensified AI search efforts fail to retain user engagement for Baidu. 5. Nomura maintains a neutral rating for Baidu with a $135 price target.
Baidu's recent gains face potential headwinds from its search revenue declines. Nomura's analysis highlights that while AI is beneficial, it does not compensate for losses in traditional revenue streams.
The analysis from analysts affects perceptions of BIDU's intrinsic value and investment prospects. Given current market enthusiasm for AI, the potential for swift reactions to analyst ratings exists.
Short-term fluctuations due to market sentiment and AI news can affect BIDU. Past performances showed similar short-lived responses to AI trends.