Baidu Plans Spin-off of Kunlunxin Semiconductor, Shares Surge 12%

Written by Emily J. Thompson, Senior Investment Analyst

BIDU+10.45%

TSM+3.89%

TSLA+0.49%

Source: CNBC

Updated: 1h ago

0mins

Source: CNBC

Spin-off Announcement: Baidu's plan to spin off its semiconductor unit Kunlunxin and list it in Hong Kong has led to a 12% surge in its stock price, reflecting strong market confidence in its future growth potential.
Market Reaction: This news has sparked investor enthusiasm, significantly boosting Baidu's stock, indicating a positive market perception of its strategic restructuring, which may attract more investor interest.
Industry Impact: The spin-off will allow Kunlunxin to operate independently, focusing on the semiconductor market, which is expected to enhance its competitiveness and accelerate technological innovation, thereby driving overall business growth.
Future Outlook: Through this spin-off, Baidu not only aims to unlock the potential value of Kunlunxin but also lays the groundwork for its expansion in the global semiconductor industry, further solidifying its leadership position in the tech sector.

BIDU

$144.32+Infinity%1D

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 143.83 USD with a low forecast of 92.00 USD and a high forecast of 177.00 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.

19 Analyst Rating

13 Buy

5 Hold

1 Sell

Moderate Buy

Current: 130.660

Low

92.00

Averages

143.83

High

177.00

Current: 130.660

Low

92.00

Averages

143.83

High

177.00

Jefferies

Thomas Chong

Buy

maintain

$159 -> $181

2026-01-02

New

Reason

Jefferies

Thomas Chong

Price Target

$159 -> $181

2026-01-02

New

maintain

Buy

Reason

Jefferies analyst Thomas Chong raised the firm's price target on Baidu to $181 from $159 and keeps a Buy rating on the shares after the company announced the proposed spin-off of Kunlunxin shares and separate listing on the Hong Kong exchange. Jefferies estimates Kunlunxin's valuation will be between $16B and $23B. This implies a valuation to Baidu of $9B-$13B, considering its stake in the unit, the analyst tells investors in a research note. The firm believes the spinoff "aims to showcase" Kunlunxin's value and "unlocks" Baidu's value in the artificial intelligence powered business.

Citi

Buy

maintain

$181

2025-12-07

Reason

Citi

Price Target

$181

2025-12-07

maintain

Buy

Reason

Citi opened a "90-day positive catalyst watch" on Baidu while keeping a Buy rating on the shares with a $181 price target after meeting with management. The firm believes better disclosure around its artificial intelligence-driven revenue along with Ernie model investments will unlock additional value in Baidu shares. Citi sees investors gaining confidence in the company's operational outlook and ways to unlock value in its assets.

JPMorgan

Neutral -> Overweight

upgrade

$110 -> $188

2025-11-24

Reason

JPMorgan

Price Target

$110 -> $188

2025-11-24

upgrade

Neutral -> Overweight

Reason

JPMorgan upgraded Baidu to Overweight from Neutral with a price target of $188, up from $110. The company's "narrative is shifting" as cloud and artificial intelligence are now set to become its primary growth engines and value drivers, the analyst tells investors in a research note. The firm estimates Baidu's cloud revenue growth can accelerate to 61% in 2026 from 23% in 2025. The market is underestimating the company's transformation, contends JPMorgan.

BofA

NULL -> Buy

maintain

$100 -> $151

2025-11-19

Reason

BofA

Price Target

$100 -> $151

2025-11-19

maintain

NULL -> Buy

Reason

BofA raised the firm's price target on Baidu to $151 from $100 and keeps a Buy rating on the shares. The firm noted that Baidu is starting to unveil its rich array of AI-powered assets, adding that Q3 marks the trough level in Baidu Core's total revenue and adjusted operating income and expects sequential improvement in Q4. BofA remains optimistic on fundamentals in 2026, expecting ad revenue to stabilize, AI cloud to outgrow the industry, robotaxi to expand overseas monetization, margin to recover, and the company to balance investment and cash flow, the analyst tells investors in a research note.

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.