Baidu Inc. Hits 200M AI Assistant Users, Plans Kunlunxin IPO to Unlock Chip Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy BABA?
Source: Benzinga
- User Growth: Baidu's Ernie AI assistant has surpassed 200 million monthly active users, successfully integrated into its core search app and PCs, and connected with platforms like JD and Meituan, enabling users to easily book flights and access health information, significantly enhancing user experience and market competitiveness.
- Accelerated AI Investment: Amid increased AI investments from rivals like ByteDance, Alibaba, and Tencent, Baidu's Ernie assistant solidifies its leading position in China's AI market with features like image and video generation, which are expected to drive future user growth and revenue increases.
- Chip Business IPO Plans: Baidu is preparing for a Hong Kong IPO of its Kunlunxin unit, aiming to raise up to $2 billion, focusing on its AI chip business to enhance funding options and governance while retaining majority ownership, reflecting the company's strategic foresight in addressing future market demands.
- Optimistic Market Outlook: Analysts expect Kunlunxin's chips to play a larger role in data centers and telecom networks, with JPMorgan projecting Baidu's chip revenue to grow sixfold by 2026, indicating the significant potential and strategic importance of this business.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BABA is 203.66 USD with a low forecast of 172.00 USD and a high forecast of 230.00 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.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 166.510
Low
172.00
Averages
203.66
High
230.00
Current: 166.510
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
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.
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