Baidu’s AI Pivot Sparks 25% Stock Surge as Analysts Boost Targets

Baidu Inc. shares soared 25% this week as the Chinese tech giant's strategic shift toward artificial intelligence captured investor enthusiasm. The rally coincided with easing U.S.-China tensions and multiple analyst upgrades that reframed the company's narrative from e-commerce stalwart to AI contender.

Jefferies' Thomas Chong raised his price target to $157 from $108, while Arete Research's Shawn Yang executed a rare sell-to-buy reversal with a $143 target. Both analysts highlighted Baidu's emerging AI chip venture and its Ernie Bot large language model as potential growth engines that could offset advertising revenue declines.

The transformation mirrors broader market trends where investors reward tech companies demonstrating credible AI capabilities. Baidu's proprietary infrastructure and focus on specialized AI chips position it uniquely in China's competitive tech landscape.