Baidu is setting the pace in the AI scene for other tech giants in China.
chinese internet giant Baidu Inc (HKG: 9888) has seen a big rally in its share price today after releasing better-than-expected revenue. Baidu impressed its investors as one of the top tech giants, which saw a major boost in profitability after the Chinese economy reopened after year-long Covid-19 restrictions.
According to data shared by the company, it said it recorded revenue of 31.1 billion yuan ($4.5 billion) for the three months ended March. The revenue, however, pales in comparison to analysts’ projection, which was pegged at 30 billion yuan. According For the company, revenue earned from Baidu Core, its business unit that houses search-based advertising sales, cloud offerings and its autonomous driving initiatives, rose 8% to 23 billion yuan.
As Barclays analysts noted prior to the release of Baidu results, it was learned that the company’s “advertising business has seen a strong return to demand, especially after the Chinese New Year, and the recovery is accelerating”. Maybe because we’re growing in 2Q”.
The analysts claimed that they “remain optimistic on China’s economic recovery and the advertising industry’s outlook for 2023”. The company’s performance metrics are also well evident as net income came in at 5.8 billion yuan. This growth was recorded, partly thanks to the printed return on its investment.
Baidu is not only a major tech company in the country, but it is also one of the companies that have been severely affected by the government’s extensive regulatory crackdown on tech companies. Investors’ bet on the rebound of tech stocks appears to be paying off with Baidu shares used as a litmus test.
As for its performance, the stock jumped 2.81% in Hong Kong and was valued at HK$124.30.
Baidu Revenue and Diversity Push
Despite Baidu’s role primarily as an internet and marketing company, it hasn’t been limiting its innovation exclusively to this niche. In fact, Baidu saw its revenue grow due to its diversification and the firm emerged as the first major internet giant in China. Display Its response to ChatGPT, OpenAI’s chatbot that has gained immense popularity since last year.
Dubbed Ernie Bot, Baidu’s goal for the new AI tool is that it will be ubiquitous and can be integrated into as many systems as possible. Some marked apparel include speakers, self-driving and smart speakers.
Baidu’s billionaire founder Robin Li said in one, “We can buy computing power, but not the ability to innovate.” inner speech Recently, saying that “this is the beginning of this area for technology competition.”
With its potential, Baidu is setting the pace in the AI scene in China for other tech giants to follow.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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