Asia Tech Wire (May 20) -- Baidu's artificial intelligence revenues could rise gradually and cushion the impact of low advertising revenues, CCB International analyst Cathy Chan said in a research note.

GenAI and fundamental models, which accounted for 6.9% of AI cloud revenue, were Baidu's main revenue source in the first quarter of 2024, the analyst said.

She added that once Baidu finishes integrating its ChatGPT-like Ernie Bot GenAI model into its search engine, this could also boost advertising revenue.

Given the long-term potential of the AI-driven business, CCB International maintained a hold rating on Baidu, while raising its H-share price target to HK$139.85 from HK$138.10.