Baidu Inc. BIDU is showing signs of a potential breakout, with its stock price climbing above key moving averages and approaching a Golden Cross—a widely followed bullish technical indicator.

Chart created using Benzinga Pro

The stock has gained 6.19% in the past month and is up 15.11% year to date, fueled in part by the company’s aggressive push into artificial intelligence (AI). While the trend is moderately bullish, lingering selling pressure suggests that investors should keep an eye on potential downside risks.

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BIDU Stock: Golden Cross On The Horizon

BIDU stock, at $95.36, well above its 20-day simple moving average (SMA) of $92.48 and its 50-day SMA of $89.41. More importantly, BIDU stock’s 200-day SMA stands at $89.83, meaning the stock has solid technical support.

If the 50-day SMA crosses above the 200-day SMA, it will confirm a Golden Cross—a signal that often precedes extended bullish trends.

AI Catalysts Fuel Investor Optimism

Baidu recently unveiled its Ernie X1 deep-thinking reasoning model, which it claims rivals DeepSeek R1 for half the cost. The company also launched Ernie 4.5, an upgrade to its AI chatbot, making it free to users ahead of schedule.

These advancements position Baidu to strengthen its competitive edge in China's AI landscape, where it faces rivals like Alibaba and DeepSeek.

Investor Implications: Bullish, But Watch For Risks

The bullish technical setup, combined with Baidu's AI-driven momentum, suggests further upside potential for the stock. However, the presence of selling pressure means investors should remain cautious. A confirmed Golden Cross could reinforce confidence among momentum traders, while long-term investors may see Baidu's AI push as a reason to stay invested.

If selling pressure persists, BIDU stock could see short-term pullbacks before resuming its upward trend.

For now, Baidu's stock is approaching a pivotal technical moment. If the Golden Cross materializes, it could mark the beginning of a sustained bullish phase, but traders are advised to watch for confirmation before making aggressive moves.

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