BIDU-SW's stock surged 5.02% during Monday's intraday trading session, reflecting strong investor optimism following the announcement of its AI chip subsidiary Kunlun Xin's independent listing application.
The spin-off of Kunlun Xin, which has submitted a listing application to the Hong Kong Stock Exchange, is expected to significantly enhance Baidu's valuation. Analysts from CICC and Goldman Sachs project that Baidu's 59% stake in Kunlun Xin could be worth up to $22 billion, accounting for 45% of Baidu's current market capitalization.
Goldman Sachs forecasts Kunlun Xin's sales to reach 3.5 billion yuan in 2025, potentially surging to 6.5 billion yuan in 2026, while Morgan Stanley predicts even higher revenue of 8.3 billion yuan in 2026, further bolstering investor confidence in Baidu's growth prospects.
Comments