Baidu Inc's stock surged 5.03% in the pre-market session on Thursday, outperforming the broader market, as the Chinese tech giant's aggressive push into artificial intelligence (AI) continues to bear fruit and fuel investor optimism.
The company's robust fourth-quarter cloud revenue, which grew significantly ahead of consensus estimates, was driven by stronger demand for its AI application programming interfaces (APIs). According to analysts at HSBC, this growth momentum is expected to sustain throughout 2025, bolstered by rising AI adoption from customers and cross-selling opportunities for Baidu's AI infrastructure.
The tech bull run in China, fueled by the remarkable success of AI startups like DeepSeek, has propelled Baidu's stock to new heights. The company's partnership with Apple to support iPhone AI services in China further underscores its leading position in the AI race. As businesses across various sectors embrace AI technologies, Baidu stands to benefit from its early mover advantage and robust AI capabilities.
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