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Baidu, Inc. (NASDAQ:BIDU) is among the best Chinese stocks to buy according to hedge funds. On April 14, Macquarie trimmed the price target on Baidu, Inc. (NASDAQ:BIDU) to $158 from $177 and maintained an Outperform rating. If we consider the stock’s performance, it has witnessed a year-to-date decline of nearly 14%. Even then, the firm anticipates AI cloud infrastructure to enhance AI-driven revenue in Q1 of the current fiscal year.

With advertising appearing soft, Macquarie expects advertising revenue to stay under strain in the times ahead. What sets Baidu, Inc. (NASDAQ:BIDU) apart as one of the best Chinese stocks to buy is its continuous investments in AI technology and cost optimization measures.

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On the same day, BofA Securities reaffirmed a Buy rating on Baidu, Inc. (NASDAQ:BIDU). According to the firm, Baidu Core’s Q1 topline and bottom line will be in line with expectations. With a price target of $180, the firm keeps its first-quarter topline guidance and adjusted operating profit at a 2% and 24% YoY decline, respectively. That said, the firm anticipates revenue growth rebound throughout the second and fourth quarters of FY26.

Baidu, Inc. (NASDAQ:BIDU) is a Beijing-based provider of a range of services, including internet content and internet maps. Incorporated in 2000, the company operates in two segments: Baidu General Business and iQIYI.

While we acknowledge the potential of BIDU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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