Although not a household name in the United States, internet giant Baidu Inc. (NASDAQ: BIDU) is massively popular in China, where its legacy search business represents a majority of all internet searches in the country. U.S. investors unfamiliar with the developments in Baidu's fast-growing AI and cloud business should take the time to get to know the firm.
To be sure, Baidu's significant net loss in the latest quarter might deter some investors, although its massive cash stockpile of approximately 296.4 billion yuan ($41.6 billion) may help ease investor concerns. With 17 out of 24 Wall Street analysts advocating for BIDU shares as a Buy, and the possibility of an additional 22% or more in upside potential on top of this year's 44% rally, Baidu is quickly becoming the AI stock to beat. Below, we look at three reasons it is worth a look for investors focused on the AI race.
