Baidu's Stock Rises on Kunlunxin Spin-off Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 02 Jan 26
Source: Benzinga
Baidu Inc's stock surged by 11.74% in pre-market trading, reaching a 20-day high, as investors reacted positively to the company's strategic plans.
The increase is attributed to Baidu's announcement of a proposed spin-off of its AI chip subsidiary Kunlunxin for a separate listing on the Hong Kong Stock Exchange. This move aims to enhance Kunlunxin's market value and attract investors focused on the AI chip sector, thereby improving Baidu's competitiveness in this rapidly growing field.
This strategic spin-off not only reflects Baidu's ambition to optimize its asset structure but also positions the company to better focus on its core AI-driven businesses, potentially unlocking significant value and driving future growth.
Analyst Views on BIDU
Wall Street analysts forecast BIDU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIDU is 160.67 USD with a low forecast of 100.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 156.080
Low
100.00
Averages
160.67
High
215.00
Current: 156.080
Low
100.00
Averages
160.67
High
215.00
About BIDU
Baidu Inc is a Chinese language Internet search provider. The Company operates its businesses through two segments, Baidu Core segment and iQIYI segment. Baidu Core segment mainly provides search-based, feed-based, and other online marketing services, as well as products and services from the Company’s new artificial intelligence (AI) initiatives, such as display advertisement and based on performance criteria other than cost-per-click, cloud services, smart devices and services, non-marketing consumer-facing services such as membership, and intelligent driving. iQIYI segment produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content, in a variety of formats, including a variety of products and services encompassing online video, online games, online literature, comics and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
