The Baidu Inc (NASDAQ: BIDU) stock price has risen 25.4% in 2023 as technology stocks in the US and China recovered, driven by the upbeat market sentiment. The internet technology company’s stock price has risen steadily since bottoming in November 2022. Will there be more gains for investors?
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While Baidu’s gains this year are impressive, the stock has risen by over 100% from its November bottom but has recently pulled back. The latest news from China’s largest search engine was about its Ernie bot, which is the answer to Open AI’s ChatGPT and Google’s Bard AI.
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Baidu is set to unveil its Ernie bot in March after completing internal testing as all large tech companies rush to launch Generative AI systems to compete with ChatGPT, which has proven extremely popular with consumers.
According to Baidu, Ernie stands for “Enhanced Representation through Knowledge Integration,”. The company has described Ernie as a “large language model” introduced in 2019. While the leading tech firms are competing to launch Generative AI, most have been developing AIs for multiple years.
Investors will be interested in seeing how Baidu’s AI performs, given the Chinese government's significant control over the content accessed by its citizens. Many have opined that Baidu’s AI will be highly censored to align with the Chinese government’s agenda.
Still, ChatGPT’s success has left many worried that AI shall take over many jobs currently being done by humans. Many predict that the demand for skilled copywriters and analysts may cease as AIs do a better job at a much faster rate than humans like yours.
However, for most AIs to do an excellent job, they need human input. Therefore, while AIs will likely take over many roles, there is an opportunity for people to develop advanced skills that will make them invaluable even in environments where AIs are deployed.
Meanwhile, the race between large tech companies to launch AIs is on, and it remains to be seen which AI will dominate the markets as the others fall behind. The short answer is yes for those wondering whether Baidu stock can rally much higher. There will likely be more upside for Baidu investors this year.
*This is not investment advice.
The Baidu stock price.
The Baidu stock price has risen 25.37% in 2023, leaving many wondering whether there could be further gains.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.