Shares of Baidu Inc. (BIDU) jumped 4.0% in afternoon trading Wednesday, following an announcement by the China-based internet search and online marketing company. Baidu revealed that its revolutionary generative artificial-intelligence (AI) product and language model, Ernie, is now available to the public.
Ernie, the AI bot developed by Baidu, is set to introduce new AI-native apps that will enable users to tap into the core abilities of generative AI, including understanding, generation, reasoning, and memory. This technological breakthrough opens up tremendous opportunities for Baidu's products and services.
Benchmark analyst Fawne Jiang reiterated a buy rating on Baidu's stock with a $210 price target. Jiang is optimistic about the potential impact of this technology on Baidu's search capabilities. According to Jiang, Ernie has the power to make search more natural and intuitive, unlocking possibilities for new types of questions search engines can answer. This enhanced user experience can drive greater engagement and pave the way for increased commercialization opportunities.
Since hitting a three-month low of $124.92 on Aug. 21, Baidu's stock has surged by 17.1%. In comparison, the iShares MSCI China ETF has gained 5.0%, and the S&P 500 has seen a modest increase of 2.7%. Clearly, investors recognize the game-changing potential of Baidu's AI technology.
Baidu's decision to open up Ernie to the public marks a significant milestone in the company's journey towards reshaping the online search landscape. As this cutting-edge technology gains further traction, we can expect Baidu to continue pushing boundaries and delivering innovative solutions for users worldwide.