Baidu’s AI Chip Unit Kunlunxin Files HK IPO; Price Target Raised to $150
US Tiger Securities raised Baidu’s price target to $150 from $135, citing the confidential Hong Kong IPO filing for AI chip unit Kunlunxin, in which Baidu will retain a 60% stake. The firm values Kunlunxin at RMB100bn (15.4x 2026 EV/sales) and modestly cut Q4 non-GAAP EBIT and EBITDA.
1. Analyst Upgrade and Price Target Hike
On February 4, US Tiger Securities analyst Bo Pei increased Baidu’s price target from $135 to $150 and maintained a Buy rating, underscoring the company's AI strategic positioning and prospective monetization catalysts within its broader AI ecosystem.
2. Kunlunxin IPO Filing Details and Ownership
Baidu confidentially filed for a Hong Kong IPO of its AI chip subsidiary Kunlunxin, planning to retain 60% ownership post-listing. Kunlunxin is projected to access independent capital for chip development, a move aimed at unlocking shareholder value.
3. Forecast Adjustments and Valuation Analysis
The analyst firm assigned Kunlunxin a valuation of RMB100bn, implying 15.4x EV/sales on estimated 2026 revenue, a conservative multiple versus peers. Simultaneously, Baidu’s Q4 non-GAAP EBIT and EBITDA forecasts were modestly reduced in light of refined depreciation, amortization, and stock-based compensation assumptions.