Four major banks maintain a "Buy" rating on Baidu (09888), expecting AI cloud infrastructure revenue to grow 90%-99% in the third quarter.

Recently, institutions including Citi, Daiwa, UBS Group AG, and Nomura have successively released third-quarter earnings previews for Baidu Inc Sponsored ADR Class A (BIDU.US, 09888), all maintaining a "Buy" rating. The institutions expect Baidu Inc Sponsored ADR Class A's third-quarter AI cloud infrastructure revenue to grow 90% to 99% year-on-year, a marked acceleration from the 50% growth rate in the second quarter. Among them, Citi expects third-quarter revenue for this business to grow 99% year-on-year to RMB 8.35 billion, with a further 14% sequential increase in the fourth quarter; Daiwa noted that large customers have already locked in GPU capacity through multi-year prepaid contracts, further enhancing demand visibility. On valuation, UBS Group AG noted that Baidu Inc Sponsored ADR Class A's current market capitalization is below its total net cash and investments. Multiple institutions have listed expectations for a first-ever dividend and progress on the spin-off listing of Kunlun Core as important subsequent catalysts. According to FactSet data, of the 36 institutions covering Baidu Inc Sponsored ADR Class A, 30 have given a "Buy" rating.