Baidu’s (BIDU) CEO, Robin Li, predicts that there will be explosive growth in AI applications throughout 2025, as shared in a New Year’s letter to employees marking the firm’s 25th anniversary. The China-based internet search company highlighted its continued focus on AI-driven innovation, including its popular digital library-turned-AI platform, Baidu Wenku.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Wenku has over 40 million paying users and attracted more than 70 million monthly active users with its AI-powered features as of late 2024. Despite no single “super app” dominating yet, Li emphasized that AI penetration is steadily increasing, which should pave the way for significant growth in the coming year. In fact, a quick look at Baidu’s website traffic shows that there was a massive 272.4% jump in total estimated visits on a year-over-year basis during 2024. This suggests that the company’s strategy is working so far.
Interestingly, Baidu has consistently reinvested over 20% of its revenue into research and development in order to maintain an edge in the tech industry. Li acknowledged the risks of staying ahead, noting, “It requires enduring setbacks, loneliness, and misunderstandings, while quickly adapting and starting over when challenges arise.”
What Is the Future of BIDU Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BIDU stock based on eight Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 29% decline in its share price over the past year, the average BIDU price target of $109.76 per share implies 32.4% upside potential.
