Baidu (BIDU) Stock Forecast & Price Target

Baidu's stock outlook is positively supported by significant revenue growth in its AI initiatives, with AI Cloud Infrastructure expanding by 33% year-over-year to RMB 4.2 billion, alongside a remarkable 128% increase in subscription-based AI accelerator revenue. Moreover, the non-advertising revenue stream has gained momentum, now constituting approximately 40% of Baidu's core revenue, driven by a strategic pivot toward subscription-based models and robust performance in AI Cloud services, which saw a 34% year-over-year increase in the first half of 2025. Additionally, overall non-advertising revenues have surged by 34% year-over-year, underscoring Baidu's ability to diversify its revenue base and capitalize on the growing demand for AI-driven solutions.

Baidu's stock faces a negative outlook primarily due to a continuing decline in its core revenues, which fell 2% year-over-year, significantly impacted by a 15% drop in advertising revenue as the transition to generative AI search has hindered traditional ad load. Furthermore, the uncertainty surrounding the monetization of GenAI capabilities is evident, as projections indicate core ad revenue may decline by 15% year-over-year and show minimal growth of only 1% expected by FY26. Additionally, the financial performance of subsidiary iQIYI reflects broader challenges, with reported revenues down 11% year-over-year, underscoring potential weaknesses in Baidu's diversified income streams.