Baidu Shares Jump 12% as Goldman Sachs Highlights Robotaxi Leadership
Shares of Baidu Inc. surged to six-month highs after a Goldman Sachs report underscored the company's commanding lead in the robotaxi market and robust growth in its artificial intelligence divisions.
The Chinese tech giant's U.S.-listed shares closed up nearly 4% in the previous session, a rally that was followed by a jump of over 12% in its Hong Kong-listed stock during intraday trading. The gains were fueled by details from Goldman's 2025 Asia Leadership Conference, where Baidu management presented its latest operational updates.
Baidu disclosed a 148% year-over-year increase in commercial ride orders for its Apollo Go robotaxi service in the second quarter, a figure Goldman Sachs cited as evidence of the company’s leading edge in autonomous driving commercialization. Overall, the service has now provided over 14 million rides, placing it first globally by that metric.
The investment bank also noted that Baidu's substantial cash reserves offer strong valuation support for investors, while its AI and autonomous driving ventures present significant structural growth opportunities.
Driverless Operations Gain Global Prominence
According to notes from Goldman Sachs analysts including Lincoln Kong, Baidu Inc. (百度)’s Apollo unit has become one of the top two global players in fully driverless commercial operations while establishing a clear lead in its domestic market. Baidu Chief Financial Officer He Haijian confirmed this position at the conference.
Management highlighted Baidu’s competitive advantages in high-precision mapping, cloud processing capabilities, and its Wenxin large language model as foundational to scaling its driverless operations. The company’s future focus will be on enhancing the in-cabin passenger experience.
Furthermore, He emphasized a key structural advantage: the per-kilometer operational cost for robotaxis in China is significantly lower than in the U.S., positioning Baidu for an earlier path to commercial profitability compared to its international peers.
AI and Cloud Business Maintain Strong Momentum
Baidu's enterprise cloud division is also displaying strong performance, with AI-related subscription revenue becoming a new core of the business. This high-value, recurring revenue stream posted 50% year-over-year growth in the second quarter, according to the Goldman conference notes, with a rising proportion coming from AI inference demand.
The company has differentiated itself with a full-stack capability, from chips to applications. This is particularly evident in its AI software ecosystem, where its Baidu Wenku document platform, with approximately 400 million monthly active users, generates more revenue and user stickiness than rivals like WPS and Feishu. AI features are also being deeply integrated into other core products like Baidu Wangpan.
AI Integration Boosts Revenue, Financials Provide Support
Baidu's investments in generative AI are translating into tangible revenue, particularly in its core search business. AI agents and digital human assistants contributed 13% of advertising revenue in the second quarter, with CFO He Haijian noting that merchants are willing to pay a premium for these value-added services.
Underpinning these growth initiatives is a robust balance sheet. As of June 2025, Baidu held 32 billion in cash and equivalents，with net cash of 21.7 billion，providing a strong cushion relative to its roughly $33 billion market capitalization.
Goldman Sachs maintained its "Buy" rating on the company, citing this financial strength as offering "extremely high downside protection." However, its 12 - month price targets of US 90 for Baidu’s ADRs and HK 88 for its Hong Kong shares sit below the stock's recent trading levels.