Baidu: AI Growth And Further Signs Of Bottoming Out Support A Bullish Narrative

(7min)

Summary

  • J.P. Morgan Asset Management expects China to outperform US stocks over the next 10-15 years, supporting a bullish outlook on Baidu.
  • Baidu's Q4 results showed strong AI demand and growth in its AI Cloud Group, despite a decline in online marketing revenue.
  • Baidu's technical chart is mixed, but potential bullish patterns and improving RSI momentum suggest upside ahead of the next earnings report in May.
  • I maintain a buy rating on Baidu, seeing it as undervalued with significant growth potential, supported by shareholder-friendly moves and favorable long-term EPS trends.

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Earlier this month, J.P. Morgan Asset Management made headlines with its updated call that it expects China to outperform US stocks over the next 10-15 years. Couple that sanguine stance with the recent relative strength in Chinese equities, and there is a

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