Baidu (NASDAQ:BIDU) is more than just a search-engine provider. Indeed, with Baidu stock, you’ll get to participate in China’s counterpart to OpenAI’s artificial intelligence chatbot, ChatGPT.
Microsoft (NASDAQ:MSFT) made a brilliant move when it invested in OpenAI’s ChatGPT technology. In 2024, there are other popular generative AI chatbots besides ChatGPT. I encourage you to invest in Baidu.
Baidu Isn’t Just China’s Google
It’s easy to pigeonhole Baidu as the Chinese version of Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google search engine. And I’ll admit, just as Google is Alphabet’s bread and butter, Baidu generates significant revenue from its popular search engine.
Yet, it’s not fair to pigeonhole Baidu in this way. For example, Baidu launched the first 24/7 robo-taxi service in China. Also, Baidu is an important AI-technology develop.
In fact, per The Wall Street Journal, Apple (NASDAQ:AAPL) “held preliminary talks with” Baidu about the possibility of using Baidu’s generative-AI technology in Apple’s devices in China.
Furthermore, Baidu recently signed a memorandum of understanding (MOU) with Nissan Motor (OTCMKTS:NSANY) to conduct research on AI and “smart cars.” Not only that, but the agreement calls for Nissan to “equip its Chinese cars with Baidu’s AI products,” Reuters reported.
Baidu’s AI Chatbot Achieves a Milestone
Clearly, Baidu is making its presence known as an AI-tech contender. Investors should keep an eye out for more partnerships, as the Baidu-Nissan MOU might only be the start of an ongoing trend.
Additionally, Baidu is quickly staking its claim as a gen-AI juggernaut in the company’s home country. U.S.-based stock traders might not be aware of this, but Baidu’s ERNIE Bot gen-AI chatbot is gaining serious traction in China.
Recently, Baidu achieves a major milestone when its ERNIE Bot “amassed 200 million users.” That’s what I would call ultra-rapid growth, as ERNIE Bot debuted on March 16, 2023.
This is a perfect example of why U.S. investors should broaden their horizons. ERNIE Bot has a huge presence in China, just like ChatGPT does in America.
Thus, investigating investment opportunities abroad can alert you to new and interesting stock ideas.
Baidu Stock: Grab This While It’s Still Cheap
Are you seeking prime gen-AI exposure in your portfolio, but at a great price? Look no further.
Baidu’s GAAP trailing 12-month price-to-earnings ratio is 12.94x, versus the sector median P/E ratio of 18.98x. Hence, there’s a terrific bargain that’s ripe for the picking.
It’s a shame that some American investors won’t take advantage of this. Maybe they’ve unfairly pigeonholed Baidu or they’re just not aware of the company.
So, feel free to grab some Baidu stock shares while they’re still cheap, as they’ll probably be much more expensive in a year or two.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.