Four Major Banks Reiterate "Buy" Rating on Baidu, Anticipate 90%-99% Growth in Q3 AI Cloud Infrastructure Revenue

Stock News11:54

According to Zhitong Finance, several institutions including Citi, Daiwa, UBS, and Nomura have recently released their Q3 earnings previews for Baidu (BIDU.US, 09888), all maintaining a "Buy" rating.

These institutions estimate that Baidu's Q3 AI cloud infrastructure revenue will grow 90% to 99% year-over-year, a significant acceleration from the 50% growth seen in Q2.

Among them, Citi estimates Q3 revenue for this segment to increase 99% year-over-year to 8.35 billion RMB, with further sequential growth of 14% in Q4; Dahua noted that major clients have locked in GPU capacity through multi-year prepayment contracts, further enhancing demand visibility.

Regarding valuation, UBS pointed out that Baidu's current market capitalization is below its total net cash and investments. Several institutions listed potential first-time dividend expectations and progress on the spin-off and listing of Kunlunxin as important upcoming catalysts.

According to FactSet data, of the 36 institutions covering Baidu, 30 have given a "Buy" rating.

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