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<Research>Daiwa Cuts BIDU-SW (09888.HK) TP to HKD170; Strong AI Cloud and GPU Cloud
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BIDU-SW (09888.HK)'s AI cloud infrastructure was a clear beat in 1Q, with related revenue growing 79% YoY to RMB8.8 billion, Daiwa said in its report. GPU cloud revenue leaped 184% YoY, reflecting its full-stack advantage bolstered by Kunlunxin (KLX). Although AI applications and AI-native marketing were soft, AI-driven revenue accounted for more than 52% of Baidu Core revenue. The broker noted that AI cloud infrastructure remains the key growth engine. Overall "cloud" revenue (including AI infrastructure and applications) rallied 53% YoY, outperforming peers by 10-15 ppts. Growth momentum was mainly driven by a surge in inference demand and broad adoption by enterprises in internet, gaming, autonomous driving and financial services. Daiwa raised its 2026 EPS forecast by 5% and lowered its 2027 EPS forecast by 12% to reflect margin mix changes and faster cloud business growth. The broker maintained a Buy rating on BIDU-SW but cut the TP from HKD175 to HKD170. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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