At the Goldman Sachs conference, Baidu revealed that the number of Apollo self-driving vehicles in operation ranks among the "top two in the world," with a clear lead domestically.

At the Goldman Sachs conference, Baidu revealed that the number of Apollo self-driving vehicles in operation ranks among the "top two in the world," with a clear lead domestically.

```

Baidu's Chief Financial Officer Junjie He revealed at the Goldman Sachs 2025 Asia Leadership Conference that Baidu Apollo has become one of the world's top two players in fully autonomous commercial operations and maintains a clear leading position in the domestic market.

On September 5, according to news from Trading Desk, the latest report from Goldman Sachs announced the meeting minutes of the 2025 Asia Leadership Conference, showing that Baidu disclosed commercialized mobility orders in the second quarter achieved a 148% year-on-year growth. This strong performance highlights the company's leading advantage in the commercialization process of autonomous driving.

Baidu’s management also disclosed the latest developments in cloud computing and AI businesses at the conference. Among them, AI subscription service revenue in the corporate cloud business maintained a 50% rapid growth in the second quarter, and the proportion of AI inference demand continues to rise. The company has established a differentiated competitive advantage in the market with its full-stack capabilities from chips to applications.

According to the meeting records, Baidu's management also stated that as of June 2025, Baidu holds a total of $32 billion in cash and equivalents, with net cash reaching $21.7 billion, which provides strong valuation support compared to its $33 billion market value.

Goldman Sachs believes that a strong cash reserve provides the company with extremely high downside protection, while AI and autonomous driving businesses bring structural growth opportunities, and maintains a "Buy" rating for Baidu, with a 12-month target price of $90 (Baidu US ADRs)/HKD 88 (Baidu HK shares).

As of press time, Baidu HK shares are up 1.3% today, at HKD 97.25 per share, which is 10% higher than Goldman Sachs’s 12-month target price prediction.

Autonomous Driving Business Achieves Global Leadership

According to Goldman Sachs analysts Lincoln Kong and others, disclosed in the meeting records, Baidu Apollo has ranked among the top two in the world in fully unmanned commercial operation scale, while establishing a clear leading advantage in the domestic market. Behind this achievement are Baidu’s multiple advantages in technology and operations.

Baidu's Chief Financial Officer Junjie He stated, the company will focus on improving the in-car experience for passengers in the future. Compared to its competitors, Baidu has significant advantages in high-precision mapping, cloud processing capabilities, and the Wenxin large model. These technological accumulations provide a solid foundation for the scaled operation of its autonomous driving business.

Operational cost advantages are also noteworthy. Junjie He emphasized at the conference that compared to the US market, the per-kilometer operating cost of autonomous driving in China is much lower. This cost structure advantage makes it easier for Baidu to achieve break-even in commercialization.

Cloud Computing and AI Business Enjoy Strong Growth Momentum

In terms of corporate cloud business, Baidu’s AI-related subscription revenue shows a strong growth trend. Goldman Sachs points out that the stability and growth potential of AI SaaS subscription revenue has become the new core of Baidu's cloud business.

According to Goldman Sachs meeting minutes, this portion of high-value, recurring revenue achieved a 50% year-on-year growth in the second quarter, with the proportion of AI inference demand continuing to rise recently.

Baidu has achieved market differentiation through its full-stack capabilities from chips to applications, particularly in the AI software sector.

Baidu Wenku’s monthly active users have reached about 400 million, generating larger revenue scale and stronger user stickiness compared to other AI software products such as WPS and Feishu.

The penetration rate of AI features in various Baidu applications continues to increase, with core products such as Wenku and Netdisk deepening AI integration, further consolidating the company’s position in the AI software ecosystem.

Baidu’s investment in AI search has begun to yield commercial results. Although the cost of AI-generated content is relatively high, such content helps improve the quality of Baidu’s search results and narrow the gap with competitors in high-quality content.

Data from the second quarter shows that AI agents and digital assistant functions have contributed 13% of Baidu's advertising revenue. Junjie He stated that merchants are willing to pay higher fees for such value-added services because they provide a better quality experience.

 

~~~~~~~~~~~~~~~~~~~~~~~~

The above wonderful content comes from Trading Desk.

For more in-depth analysis, including real-time interpretations and field research, please join [Trading Desk ▪ Annual Members]

Risk Warning and DisclaimerThe market has risks, and investment must be prudent. This article does not constitute personal investment advice, nor does it take into account the unique investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions contained in this article are suitable for their particular circumstances. Any investment made accordingly is at your own risk. ```