Baidu's stock surged 5.03% intraday on Monday, reflecting strong investor confidence in the company's strategic moves and growth prospects.
The rally follows Baidu's announcement of the spin-off of its AI chip subsidiary, Kunlun Xin, which has applied for a listing on the Hong Kong Stock Exchange. Analysts, including those from CICC and Goldman Sachs, project the subsidiary's valuation could exceed $50 billion, with Baidu's 59% stake potentially worth $22 billion. This spin-off is seen as a significant value-unlocking event for Baidu.
Additionally, Benchmark Co. raised Baidu's target price to $215 from $158, citing strong growth potential in its core businesses and AI initiatives. The upgrade further fueled bullish sentiment among traders.
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