AsianFin -- Baidu Inc. heads into its earnings release with investor expectations at a low ebb, offering the Chinese search giant a chance to stand out amid a disappointing tech earnings season.

While Baidu was once seen as a front-runner in China’s artificial intelligence race, it has recently lagged behind rivals. Breakthroughs from upstart DeepSeek and renewed AI momentum at Alibaba Group Holding Ltd. have captured investor attention. As a result, Baidu’s stock has climbed just 6% in Hong Kong this year, compared to a 48% gain for Alibaba and a 19% rise in the Hang Seng Tech Index.

Analysts have steadily lowered their outlook for Baidu, with the average 12-month price target falling 26% over the past year. The stock is now trading at a significant discount to both its historical averages and sector peers—leaving room for a potential upside if the company can deliver any positive surprises.