On November 20, Kai Wang, an analyst at Morningstar, issued a report indicating that Baidu's AI cloud business is anticipated to be a key driver of the company's long-term growth. He projects that, with the backing of cloud infrastructure, Baidu's AI cloud business revenue will witness a year-on-year increase of over 20% in the fourth quarter. He pointed out that Baidu has proven its prowess as a hyperscale cloud service provider, and investors might be overlooking its significant long-term growth potential. Although Baidu faces mounting competition in its AI-centric sectors, including robotaxi services and language models, the company is well-positioned in the competitive landscape due to its substantial capital resources, data superiority, and robust R&D investment. Morningstar has set a fair value estimate of $146 for Baidu's ADR and holds the view that Baidu's stock is currently undervalued, considering the economic recovery and the resurgence of its advertising business.