Baidu Surges 2.74% on Strong AI Momentum Despite Ranking 271st in Daily Trading Volume

On August 22, 2025, Baidu (BIDU) rose 2.74% with a trading volume of $0.38 billion, ranking 271st in daily trading activity. Recent analyst activity and strategic AI advancements are influencing investor sentiment toward the stock.

Baidu’s AI portfolio expansion, including the public launch of its Ernie Bot and over 70 large language models, positions the company as a key player in China’s rapidly evolving AI landscape. Regulatory approvals for AI chatbots and partnerships with major tech firms underscore its growth potential. Analysts from institutions like Bank of America and Loop Capital have reaffirmed “Buy” ratings, reflecting confidence in its long-term trajectory.

Valuation metrics suggest Baidu is undervalued. A discounted cash flow (DCF) model estimates its intrinsic value at $153.73 per share, a 43% discount to its current price. The stock’s price-to-earnings (PE) ratio of 7.93x is significantly below industry and peer averages, further supporting the case for undervaluation. Analysts’ average price target exceeds the recent closing price by 14%, aligning with the valuation assessment.

A backtested strategy of holding the top 500 stocks by daily trading volume for one day from 2022 to 2025 yielded a total return of 31.52% over 365 days, with a Sharpe ratio of 0.79. The strategy’s highest daily return was 4.95%, while the lowest was -4.47%, illustrating short-term momentum potential amid market volatility.