---
title: "\"Big Banks\" JP Morgan: Baidu's quarterly results are expected to be relatively minor, focus on AI cloud infrastructure transformation"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282781085.md"
description: "JP Morgan maintains a \"Buy\" rating on Baidu-SW with a target price of HKD 195, expecting first-quarter performance to be in line with market consensus, but core advertising revenue is expected to decline by 19%. Growth in AI cloud infrastructure and inference will offset weak advertising, with cloud revenue expected to grow by 28% and AI cloud infrastructure growth at 85%. Market focus shifts to whether Baidu can become a reliable platform for AI infrastructure investment, while lowering earnings per share forecasts for 2026 and 2027 by 14% and 9%, respectively"
datetime: "2026-04-15T03:52:42.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282781085.md)
  - [en](https://longbridge.com/en/news/282781085.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282781085.md)
---

# "Big Banks" JP Morgan: Baidu's quarterly results are expected to be relatively minor, focus on AI cloud infrastructure transformation

JP Morgan published a research report, maintaining an "Overweight" rating on Baidu-SW (09888.HK) with a target price of HKD 195; the target price for Baidu (BIDU.US) in the US stock market is USD 200. The bank expects the overall performance in the first quarter to be in line with market consensus, but core advertising will record another weak quarter, offset by strong growth in AI cloud infrastructure and inference.

The bank predicts that Baidu's core advertising revenue will decline by 19% year-on-year, widening from declines of 18% and 16% in the third and fourth quarters of last year, respectively, while forecasting overall cloud revenue growth of 28% and AI cloud infrastructure growth of 85%. The bank believes that market focus has shifted from traditional search monetization to whether Baidu can become a reliable listed platform for AI infrastructure investment through AI cloud and Kunlun chips.

The bank has lowered its adjusted earnings per share forecasts for Baidu for 2026 and 2027 by 14% and 9%, respectively, to reflect additional AI investments

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