Baidu Inc. (NASDAQ: BIDU) surged 5.01% during Tuesday's trading session, buoyed by a major AI adoption milestone and strategic moves to unlock value from its semiconductor business.
The company's AI-powered Ernie Assistant surpassed 200 million monthly active users, integrated into platforms like JD.com and Meituan for services ranging from food delivery to legal advice. Concurrently, Baidu is advancing plans for a Hong Kong IPO of its AI chip unit, Kunlunxin, which could raise up to $2 billion, according to analysts.
Bank of America reiterated a Buy rating with a $180 target, citing Baidu's "AI-led recovery" and the chip spinoff's potential to capitalize on China's push for domestic alternatives to Nvidia. The dual catalysts underscore Baidu's pivot from search to high-growth AI infrastructure and applications.
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