Bank of America: Reaffirms "Buy" rating for Baidu, expects AI-related business to maintain high-speed growth.

Bank of America Securities released a report stating that Baidu has independently built a complete AI full-stack infrastructure and services, including self-developed AI chips with the ability to attract third-party customers, leading global unmanned taxi services, rapidly growing cloud services, advanced large models, and the landing of applications in multiple scenarios. The report mentioned that Baidu, at an investor conference, believes that AI will bring substantial returns, mainly reflected in the company's possession of real-world scenarios and applications, capable of creating incremental commercial value from AI; in the era of GPUs, Baidu Cloud has gained significant competitive advantages with its full-stack service capabilities and self-developed AI chips. The report stated that Baidu's AI-related business revenue in the third quarter increased by 50% year-on-year to 10 billion yuan, already accounting for approximately 40% of Baidu's total core business revenue. The bank predicts that Baidu's AI-related business will continue to grow rapidly, reiterating its "buy" rating with a target price of $151 and an H-share target price of 148 Hong Kong dollars.