Baidu's AI Business Likely Maintained Solid Momentum in 3Q

Dow Jones10-23 11:43

0343 GMT - Baidu's AI business likely maintained solid momentum in 3Q, according to Citi analysts in a research note. Citi expects Baidu's AI cloud infrastructure growth to reach 99% on year during the quarter, thanks to strong AI demand. That said, Citi cautions there are downside risks to consensus forecast for Baidu's net profit, due to its high investment in model training and AI applications. Citi expects its AI cloud Infrastructure revenue to grow 14% sequentially in 4Q. Citi remains a buy rating on undemanding valuation and multiple catalysts ahead, including first-ever dividend payment announcement. The bank cuts Baidu's target price of its ADRs to US$154.00 from US$166.00 due to sector de-rating. Its ADRs last traded at US$77.98.

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