Chinese tech giant Baidu Inc. (BIDU) has fortified its AI (artificial intelligence) suite with two new tools, called text-to-image generator and no-code app maker. The two products were unveiled at the Baidu World Conference 2024, held in Shanghai today. Despite the launch of the new products at the conference, BIDU shares were down 3% in pre-market trading, as of writing.
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Baidu’s AI Tools Keep Getting Better
The new text-to-image generator is called iRAG, which stands for Image Generation with Retrieval-Augmented. The iRAG is capable of addressing the “hallucination” issue in images created through large language models (LLMs). Hallucination refers to images generated with superficial elements as well as those created without fully incorporating the input text. iRAG is expected to generate more realistic and accurate images by leveraging Baidu’s vast image database.
The second tool launched was the no-code tool, named MiaoDa. The tool allows building apps with minimal coding or programming knowledge. MiaoDa involves multiple agents and integrates various tools to develop AI models without coding expertise. It is open for pre-orders, with deliveries expected to commence in the first quarter of 2025.
Other Updates at the World Conference
CEO Robin Li said that Baidu’s Ernie platform is empowering a wider user base by handling nearly 1.5 billion queries and interactions daily. The company boasted 200 million daily users in May, and 700 million in September, reflecting an impressive growth over recent months. The Ernie platform answers questions, generates texts, and assists in different applications by using AI.
Li noted that AI agents are the future of tomorrow and Baidu is determined to flood the market with four types of agents aimed at companies, roles, tools, and industries. To date, Baidu’s AI platform has gained 150,000 enterprises and 800,000 developers.
Hedge Funds Grow Increasingly Positive on Baidu
According to TipRanks’ Hedge Fund Trading Activity tool, Baidu has a Very Positive Hedge Fund Confidence Signal. This is based on the activity of several hedge funds that bought 2.8 million worth of BIDU shares in the last quarter.
Is Baidu Stock a Buy or Sell?
Wall Street remains highly optimistic about Baidu stock’s trajectory based on its well-established business model and robust search engine. On TipRanks, BIDU stock has a Strong Buy consensus rating based on 11 Buys and three Holds. The average Baidu price target of $125.89 implies 42.6% upside potential from current levels. Year-to-date, BIDU shares have declined 25.9% amid macro pressures in China.
