Baidu Inc. (NASDAQ: BIDU) is gaining traction in cloud computing and generative AI, offsetting challenges from China's uneven macroeconomic recovery. Analysts at Mizuho (NYSE: MFG) have raised their price target to $105 from $95, citing strong AI-driven growth.

Key Highlights from Mizuho's Analysis

• Cloud revenue surged 26% YoY in Q4, reflecting broader AI adoption.
• Generative AI contributes a double-digit percentage of total revenues.
• ERNIE 4.5 model shift toward open-source could accelerate adoption, mirroring DeepSeek's strategy.
• Daily API calls for ERNIE LLM skyrocketed to 1.65 billion in December (from 50 million a year earlier).
• 2026 core EBITDA forecast raised by 5% to 31 billion yuan on AI monetization and macro support.

AI & Search Monetization Boost Outlook

Despite a 7% decline in advertising revenue, Mizuho expects gradual improvement in 2025, fueled by:
✔️ AI-driven search monetization
✔️ Macroeconomic policy stimulus
✔️ Cloud expansion contributing $30 per share

What's Next for Baidu?

While U.S.-listed Baidu shares fell 7.5% on Tuesday, analysts still see AI as a "free call option" at current levels. Seasonal softness due to Lunar New Year is expected, but a year-over-year revenue recovery is likely.

Relevant Financial APIs for Deeper Insights

• Company Rating API - Get real-time analyst ratings for Baidu.
• Technical Intraday API (Williams) - Track Baidu's short-term price movements.

Final Thoughts

Baidu's strategic push in generative AI and cloud computing positions it well for future growth, despite near-term geopolitical concerns. AI adoption remains a key catalyst for both revenue and valuation upside.