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Reading: Jefferies Upgrades Outlook on Baidu (BIDU) After AI Chip Unit Spin-Off Announcement
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Money

Jefferies Upgrades Outlook on Baidu (BIDU) After AI Chip Unit Spin-Off Announcement

Madisony
Last updated: January 8, 2026 12:03 pm
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Jefferies Upgrades Outlook on Baidu (BIDU) After AI Chip Unit Spin-Off Announcement
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Baidu, Inc. (NASDAQ:BIDU) is likely one of the AI Shares Making Waves on Wall Avenue. On January 2nd, Jefferies analyst Thomas Chong raised the agency’s worth goal on the inventory to $181 from $159 and saved a “Purchase” score on the shares. Agency analysts stay constructive on the shares as they view potential worth unlock from the latest HK itemizing whereas BIDU retains management.

The tech large lately introduced plans to spin off its synthetic intelligence chip subsidiary, Kunlunxin, and listing it in Hong Kong. The corporate has already filed a list utility on the Hong Kong Inventory Trade, with the proposed spin-off to incorporate a Hong Kong public providing of Kunlunxin shares for public subscription and a share placement.

“Baidu introduced the proposed spin-off of Kunlunxin (KLX) shares and individually itemizing to Principal Board of Inventory Trade of Hong Kong. The proposed spin-off might be effected by the use of World Providing, which includes (a) HK public providing of Kunlunxin Shares for subscription by public in HK; (b) share placement to institutional {and professional} traders.”

Analysts famous how after the completion of this proposed spin-off, it’s possible that KLX will stay as a subsidiary of Baidu. Nevertheless, the deal relies on approvals from authorities. This deal marks one other replace from Baidu on KLX after the earlier one from December 2025.

Baidu, Inc. (NASDAQ:BIDU) is a Chinese language web large and AI pioneer, identified for its noteworthy investments in synthetic intelligence expertise and its place because the dominant search engine inside the nation.

Whereas we acknowledge the potential of BIDU as an funding, we consider sure AI shares supply larger upside potential and carry much less draw back threat. When you’re searching for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.

READ NEXT: 10 AI Shares Traders Are Watching and 10 Finest AI Shares to Purchase Underneath $50

Disclosure: None.

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