Baidu, Inc. (NASDAQ:BIDU) is one of the 10 AI Stocks to Keep on Your Radar. On February 4, US Tiger Securities analyst Bo Pei raised the price target on the stock to $150.00 (from $135.00) while maintaining a “Buy” rating. The firm is bullish on Baidu, particularly due to its AI ecosystem optionality and monetization catalysts.
The firm believes that Baidu will continue to unlock shareholder value following the recently announced listing of its AI chip subsidiary, Kunlunxin. It is also of the view that Baidu Cloud is well-positioned to benefit from the accelerated adoption of AI across China and that its robotaxi business may see a valuation rerating as investor focus on transitions from AI infrastructure to downstream applications.
For the fourth quarter, the firm’s revenue estimates remain unchanged. However, it has modestly trimmed its non-GAAP EBIT and EBITDA as assumptions around D&A and SBC are refined. Baidu has been actively exploring ways to unlock shareholder value, and the most prominent example has been its decision to spin off and pursue an independent listing of its AI chip subsidiary Kunlunxin.
US Tiger Securities highlighted how Baidu has confidentially filed a Hong Kong IPO application and currently owns an estimated 60%. The company noted that it intends on retaining majority control post-IPO.
Strategically, we view this move as a positive step toward unlocking hidden value while providing Kunlunxin with independent access to capital to support continued AI chip development. We assign a valuation of RMB 100bn to Kunlunxin, implying 15.4x EV/sales on our projected 2026 revenue. We view this multiple as conservative relative to listed peers such as Cambricon Technologies, which currently trades at approximately 31.5x EV/sales.
Even though the firm remains cautious on BIDU’s near-term revenue and earnings growth trajectory, it believes that the stock is increasingly tied to its long-term AI optionality. The firm sees multiple catalysts supporting upside, particularly in robotaxi and AI cloud.
Baidu’s (BIDU) AI Chip Spinoff Seen as Catalyst for Shareholder Value
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Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.
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