CICC has decided to uphold its “Outperform Industry” rating for Baidu. While Baidu's revenue in the third quarter faced some headwinds, notable strides have been achieved in the commercialization of AI. There is a robust demand for intelligent agents and digital human solutions. Additionally, the GPU cloud segment has witnessed growth exceeding 50%. The company is actively pushing forward with its AI transformation strategy and is also fine-tuning its approach to shareholder returns, all while maintaining a substantial net cash position. Through SOTP (Sum of the Parts) valuation analysis, it is projected that Baidu's U.S.-listed stocks hold a 55% upside potential. Moreover, the non-GAAP (Generally Accepted Accounting Principles) price-to-earnings (PE) ratio for 2025 is estimated to be a mere 18 times, which is notably lower than the targeted 28 times, leading to a target price of US$189.