Baidu's AI Cloud Revenue Growth Expected to Slow in 2Q -- Market Talk

Dow Jones

May 23, 2025

0821 GMT - The outlook for Baidu's AI cloud business is favorable, but its growth rate is likely to normalize in 2Q, according to Nomura analysts in a research note. The business unit's revenue grew 42% on year in 1Q, thanks to strong demand from enterprises to deploying large language models, as well as contribution from project-based contracts, the analysts note. Still, the analysts expect Baidu's cloud revenue growth to slow down in 2Q, growing 26%, assuming no additional contribution from project-based contracts. They also note that the strength in Baidu's cloud business is not enough to offset the weakness and structural challenges faced by its ad business, which generates over 80% of its profits, based on their estimates. Nomura keeps a neutral rating, and cut its target price of its ADRs from US$98.00 from US$95.00. Its ADRs last traded at US$84.07. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

May 23, 2025 04:21 ET (08:21 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2537188075"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2537188075\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2537188075?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-05-23 16:21","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2537188075","market":"fut","top_or_hot":-1,"title":"Baidu's AI Cloud Revenue Growth Expected to Slow in 2Q -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0821 GMT - The outlook for Baidu's AI cloud business is favorable, but its growth rate is likely to normalize in 2Q, according to Nomura analysts in a research note. The business unit's revenue grew 42% on year in 1Q, thanks to strong demand from enterprises to deploying large language models, as well as contribution from project-based contracts, the analysts note. Still, the analysts expect Baidu's cloud revenue growth to slow down in 2Q, growing 26%, assuming no additional contribution from project-based contracts. They also note that the strength in Baidu's cloud business is not enough to offset the weakness and structural challenges faced by its ad business, which generates over 80% of its profits, based on their estimates. Nomura keeps a neutral rating, and cut its target price of its ADRs from US$98.00 from US$95.00. Its ADRs last traded at US$84.07. (tracy.qu@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 23, 2025 04:21 ET (08:21 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Baidu's AI Cloud Revenue Growth Expected to Slow in 2Q -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBaidu's AI Cloud Revenue Growth Expected to Slow in 2Q -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-23 16:21</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0821 GMT - The outlook for Baidu's AI cloud business is favorable, but its growth rate is likely to normalize in 2Q, according to Nomura analysts in a research note. The business unit's revenue grew 42% on year in 1Q, thanks to strong demand from enterprises to deploying large language models, as well as contribution from project-based contracts, the analysts note. Still, the analysts expect Baidu's cloud revenue growth to slow down in 2Q, growing 26%, assuming no additional contribution from project-based contracts. They also note that the strength in Baidu's cloud business is not enough to offset the weakness and structural challenges faced by its ad business, which generates over 80% of its profits, based on their estimates. Nomura keeps a neutral rating, and cut its target price of its ADRs from US$98.00 from US$95.00. Its ADRs last traded at US$84.07. (tracy.qu@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 23, 2025 04:21 ET (08:21 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BIDU","symbol_name":"百度","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2537188075","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2537188075","pubTimestamp":1747988460,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0821 GMT - The outlook for Baidu's AI cloud business is favorable, but its growth rate is likely to normalize in 2Q, according to Nomura analysts in a research note. The business unit's revenue grew 42% on year in 1Q, thanks to strong demand from enterprises to deploying large language models, as well as contribution from project-based contracts, the analysts note. Still, the analysts expect Baidu's cloud revenue growth to slow down in 2Q, growing 26%, assuming no additional contribution from project-based contracts. They also note that the strength in Baidu's cloud business is not enough to offset the weakness and structural challenges faced by its ad business, which generates over 80% of its profits, based on their estimates. Nomura keeps a neutral rating, and cut its target price of its ADRs from US$98.00 from US$95.00. Its ADRs last traded at US$84.07. ","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BIDU":"百度","09888":"百度集团-SW"},"translate_title":"百度第二季度人工智能云收入增长预计将放缓——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"09888":1,"BIDU":1},"content_text":"0821 GMT - The outlook for Baidu's AI cloud business is favorable, but its growth rate is likely to normalize in 2Q, according to Nomura analysts in a research note. The business unit's revenue grew 42% on year in 1Q, thanks to strong demand from enterprises to deploying large language models, as well as contribution from project-based contracts, the analysts note. Still, the analysts expect Baidu's cloud revenue growth to slow down in 2Q, growing 26%, assuming no additional contribution from project-based contracts. They also note that the strength in Baidu's cloud business is not enough to offset the weakness and structural challenges faced by its ad business, which generates over 80% of its profits, based on their estimates. Nomura keeps a neutral rating, and cut its target price of its ADRs from US$98.00 from US$95.00. Its ADRs last traded at US$84.07. (tracy.qu@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 23, 2025 04:21 ET (08:21 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}