Baidu Chip Unit's IPO in Focus as 4Q Results Likely Unsurprising -- Market Talk

Dow Jones01-26

0622 GMT - Baidu's 4Q results will likely be unsurprising, so investors are expected to focus on updates to its capital return plan and artificial-intelligence chip unit's IPO, Nomura analysts Jialong Shi and Rachel Guo say in a note. Total revenue is likely to have declined by 5.7% on year in 4Q, while operating profit is likely to have fallen 43% on weakness in its ad business, they say. Nomura expects Baidu's shares to continue to rally ahead of Kunlunxin's listing. But it says the Chinese search-engine operator needs to offer new catalysts such as a regular dividend or making Hong Kong its primary listing to retain investors after Kunlunxin's IPO. Nomura maintains a buy rating on Baidu's ADRs and raises their target price to $196.00 from $178.00. The ADRs last closed at $161.44. (jason.chau@wsj.com)

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January 26, 2026 01:22 ET (06:22 GMT)

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