On August 19, UBS released a research report stating that Baidu (09888.HK) reported weak second-quarter results, with AI cloud infrastructure revenue growing by 50% year-on-year, a slowdown from the 79% growth in the first quarter, possibly due to the impact of revenue recognition timing. UBS emphasized that the computational demand for AI training and inference remains strong, and expects growth to reaccelerate to over 60% in the second half of the year, driven by increased spending from existing customers and an expanding customer base. UBS slightly raised its forecast for Baidu's AI cloud infrastructure revenue growth in the second half of the year to over 60%, while lowering its forecast for core operating profit in the second half by 6% to reflect increased R&D spending. The full-year forecast for Baidu's core revenue remains largely unchanged, with the non-GAAP net profit forecast reduced by 27%, and the target price lowered from HK$165 to HK$155, maintaining a 'Buy' rating.