Baidu (NASDAQ:BIDU) is not just a search engine provider. With the company’s stock, investors can tap into China’s answer to OpenAI’s ChatGPT, a groundbreaking artificial intelligence chatbot.
When Microsoft (NASDAQ:MSFT) decided to invest in OpenAI’s ChatGPT technology, it was a strategic move that paid off. Now, as we enter 2024, various generative AI chatbots, including ChatGPT, are gaining popularity. For those looking to invest in this innovative technology, Baidu is a strong contender worth considering.
While Baidu is often likened to Google, owned by Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), due to its search engine dominance, the company is much more than that. Baidu has ventured into the world of AI and technology with initiatives like launching China’s first 24/7 robo-taxi service, showcasing its advancements in the field.
Furthermore, Baidu has been making waves in the AI sector, particularly in China. The company’s ERNIE Bot gen-AI chatbot has attracted a staggering 200 million users since its launch in March 2023, demonstrating rapid growth and adoption in the country.
For investors seeking exposure to cutting-edge gen-AI technologies at an attractive price point, Baidu presents a compelling opportunity. With a price-to-earnings ratio of 12.94x, below the sector median of 18.98x, Baidu’s stock offers a bargain that should not be overlooked.
As Baidu continues to solidify its position as a leader in AI technology, partnerships like the Baidu-Nissan memorandum of understanding (MOU) and the success of ERNIE Bot underscore the company’s potential for future growth and innovation. U.S. investors looking to diversify their portfolios and capitalize on overseas opportunities may find Baidu to be a valuable addition.
In conclusion, Baidu’s foray into the world of gen-AI technologies, coupled with its affordable stock price, makes it an attractive investment option for those interested in the future of artificial intelligence. By expanding their investment horizons and considering opportunities abroad, investors can uncover hidden gems like Baidu that offer significant growth potential.
