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<Research>G Sachs: BIDU-SW AI Cloud Remains Strong; AI Biz to Exceed 50% of Revenue by End-2026
Recommend 10 Positive 8 Negative 6 |
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BIDU-SW (09888.HK)'s 1Q26 results showed accelerated revenue growth in its cloud business this year, particularly in GPU-based cloud services, Goldman Sachs said in its report. The broker expected Baidu's AI-driven businesses to grow by more than 30% YoY, mainly supported by the solid AI cloud infrastructure growth (over 50% YoY). It forecast that the contribution from AI-driven businesses will surpass that of traditional/other businesses by end-2026. At the analyst briefing, management revealed that Baidu aims for its cloud growth to outpace the market and major peers in the coming quarters. The company observed that token usage is shifting from training to inference, which helps Baidu Cloud expand its customer coverage. Citing management, the report noted that the current capabilities of the Ernie model are lagging, and future R&D will focus on revitalizing model performance, prioritizing the development of Ernie to drive MaaS revenue. Goldman Sachs also commented on iQIYI, Inc. (IQ.US). The broker lowered its revenue forecasts for 2026-28 by 6-7% to reflect weaker-than-expected membership and advertising growth prospects. In light of operating deleveraging and margin pressure, it cut its net profit forecasts for the same period by 93%, 36% and 31%, respectively. The broker reduced its TP for iQIYI, Inc. from USD1.8 to USD1.6, while maintaining a Neutral rating. 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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