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

AASTOCKS
2026.04.15 03:52

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

Source: AASTOCKS The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
© 2026 Longbridge｜Disclaimer