"When it comes to Chinese internet giant Baidu ( NASDAQ:BIDU), I think investors stand to get AI-powered growth at a very reasonable price. Additionally, with a 0.43 beta, investors might be able to enjoy a less choppy ride once the next market-wide correction in U.S. markets finally happens. At the time of this writing, shares of Baidu trade at 10.8 times trailing price-to-earnings (P/E). Good luck finding anything that cheap that's remotely tied to the AI trade."
"Undoubtedly, it's getting harder to find value in today's market, especially if you want a good seat to the AI show. That said, for those willing to explore potential opportunities in the Chinese market, I do think there are some of those growth at a reasonable price (GARP) options out there. With the company also looking to become a bigger force with AI chips to lessen the dependence on GPU makers, it seems like the Baidu story rhymes a lot with the one that's playing out for Alphabet ( NASDAQ:GOOG) or Google right now."
Baidu offers AI-driven growth at a relatively low valuation, trading around 10.8 times trailing P/E and showing a beta of 0.43. The company deploys its Ernie model and integrates AI across multiple business lines, positioning it as a leading AI player in China. Management is investing in proprietary AI chips to reduce dependence on external GPU suppliers. These moves mirror strategies by large western peers such as Alphabet. For value-minded investors seeking growth-at-a-reasonable-price exposure to AI outside the Magnificent Seven, Baidu represents a potential opportunity within the Chinese market.
Read at 24/7 Wall St.
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