China's Baidu Tops First-Quarter Revenue Estimates Aided by AI Demand Surge
May 21 (Reuters) - Search engine giant Baidu, on Wednesday reported a surprise rise in first-quarter revenue fueled by increasing demand for its AI cloud services.
Baidu offset losses in its advertising market by growing its AI Cloud segment, which provides cloud computing, AI-powered solutions, and services to enterprises, and drove revenue.
U.S.-listed shares of Baidu rose 2.4% in premarket trading.
Revenue in the first quarter stood at 32.45 billion yuan ($4.50 billion), beating analysts' average estimate of 30.9 billion yuan, according to data compiled by LSEG.
Baidu's online marketing business, which contributes the majority of its revenue, fell 6% to 17.31 billion yuan. Analysts had estimated 17.39 billion yuan.
The company reported profit of 21.59 yuan per American Depositary Share, compared with profit of 14.91 yuan per share a year earlier.
($1 = 7.2067 Chinese yuan renminbi)
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