Cathie Wood Bets Big on This Chinese Tech Stock as Trade Tensions Ease
May 19 - Cathie Wood's Ark Autonomous Technology & Robotics ETF has quietly snapped up 30,217 shares of Baidu (NASDAQ:BIDU), valued at about $2.7 million, according to a recent report.
The move comes as U.S.-China trade tensions ease: Washington has slashed tariffs on Chinese goods from 145 percent to 30 percent, while Beijing cut its duties on U.S. imports from 125 percent to 10 percent.
Warning! GuruFocus has detected 3 Warning Signs with BIDU.
Ark's flagship Innovation ETF (ARKK) has lagged this year, up just 1 percent versus a 1 percent gain for the S&P 500. Over the past 12 months, that fund saw net outflows of $2.0 billion, reflecting lingering skepticism about its aggressive bets.
Baidu shares are roughly flat in recent sessions but have climbed 6 percent year-to-date. Wood's team cites Baidu's push into artificial intelligence and autonomous driving, areas where the company has rolled out its Ernie X1 and Ernie 4.5 AI models, as key catalysts.
Wood, known for backing disruptive themes like robotics and genomics, sees China's market reopening and technology innovation as fertile ground. While some investors question her timing, this latest purchase underscores her conviction that Baidu can leverage easing trade barriers to accelerate its AI and mobility ambitions.
Based on the one year price targets offered by 31 analysts, the average target price for Baidu Inc is $113.43 with a high estimate of $207.96 and a low estimate of $75.98. The average target implies a upside of +26.97% from the current price of $89.34.
Based on GuruFocus estimates, the estimated GF Value for Baidu Inc in one year is $119.92, suggesting a upside of +34.23% from the current price of $89.34. For deeper insights, visit the Baidu Forecast page.
This article first appeared on GuruFocus.
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