Baidu Inc. (BIDU) shares surged 5% in Friday's trading session, following remarks from President Trump that eased concerns over escalating trade tensions between the US and China. The rally in Baidu's stock price was further fueled by optimism surrounding the company's prospects in the rapidly growing artificial intelligence (AI) sector.
President Trump indicated a reluctance to impose additional tariffs on Chinese goods, stating, "We have one very big power over China, and that's tariffs, and they don't want them, and I'd rather not have to use it." This comment from the US leader signaled a potential de-escalation of the trade war, boosting investor sentiment towards Chinese stocks, including Baidu.
Additionally, Baidu's strong position in the AI industry and its robust AI strategy have garnered Wall Street's attention. Analysts at Citi maintained a "Buy" rating on Baidu, highlighting the company's ongoing transformation and the potential monetization of its AI-enhanced search capabilities. With the increasing adoption of AI content, Baidu's focus on core strengths in search and AI Cloud is expected to yield better returns and drive significant growth.
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