Baidu Jumps as Morgan Stanley Touts Its Best AI Trade in China
- Stock gains, upgraded to overweight from equal-weight at MS
- Demand for firm’s answer to ChatGPT robust, analysts say
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Baidu Inc. is positioned to be the best proxy to own as artificial intelligence tools help China shift $7.4 trillion spending from offline to the internet, Morgan Stanley said.
Analysts led by Gary Yu said Baidu is “the most obvious beneficiary” of increasing AI adoption in China. They upgraded the search-engine operator to overweight from equal-weight, citing the firm’s extensive know-how in areas like autonomous driving and generative AI models, as well as its proprietary search data.