Baidu Reports 7% Core Revenue Growth, AI Cloud Surges 42%, Robotaxi Expands Dubai Abu Dhabi

Baidu reported a mixed first quarter for 2025, with total revenue at approximately $4.47 billion, showing a modest 3% year-over-year increase, while net profits remained strong. Its core revenue rose 7%, driven significantly by a 40-42% surge in the AI Cloud segment, underscoring Baidu's strategic focus on AI as a key growth driver. Despite a 6% decline in network marketing revenue and a 9% drop in subsidiary iQIYI's revenue, Baidu expanded its Apollo Go robotaxi service internationally to Dubai and Abu Dhabi, highlighting its commitment to autonomous ride-hailing. Analyst sentiment remains positive, with an average price target around $110-$113 and a consensus 'Outperform' rating, reflecting expectations of continued upside driven by AI advancements. However, Baidu lags behind some peers in the Chinese tech sector, with shares rising modestly compared to larger gains by competitors like Alibaba. Overall, Baidu's AI cloud growth and global robotaxi expansion position it for long-term opportunities despite near-term revenue challenges.