Baidu stock price exploded higher in Hong Kong, reaching its highest level since 2024. It jumped to a high of H$143.4, up by over 93% from its lowest level in 2025. This rally happened as the company filed for an initial public offering for Kunlunxin, its artificial intelligence and robotics business.
Kunlunxin files for an IPO
Baidu, the biggest search engine company in China, started the year well as it filed for an IPO for Kunlunxin in Hong Kong. The management believes that spinning it off as an independent company will help to reflect its real valuation better.
For one, the listing will make the business available to investors seeking to invest in AI chips and related software and hardware. This is notable as Kunlunxin has positioned itself as a viable alternative to other large chips companies like Nvidia.
Analysts believe that the ideal valuation for Kunlunxin could top $3 billion. However, recent IPOs for Chinese companies have been highly successful, meaning that the real valuation may be bigger than that.
A good example of this is Moore Threads and MetaX, whose shares went parabolic after their IPOs recently. Other companies, including Shanghai Iluvatar CoreX Semiconductor and Biren Technology have also surged after their IPOs.
Core advertising business is slowing
The Kunlunxin IPO will help Baidu to monetize its business at a time when its advertising business is slowing as Chinese companies preserve cash.
The most recent results showed that Baidu’s revenue dropped by 7% in the third quarter to RMB 32.7 billion, which is equivalent to $4.37 billion.
Baidu’s profits have also slumped, with the net income coming in at RMB 7.32 billion, down from the RMB 7.633 billion it made in the same period a year earlier.
The slowdown in the advertising business is significantly different from what Google is doing. Google has continued to fire on all cylinders recently, which helped to push its market cap to over $3.7 trillion.
Baidu’s ad business is usually limited by its geography since it mostly caters to Chinese customers. Google, on the other hand, is a more global company that serves advertisers from around the world.
The deteriorating ad business was offset by its AI cloud business, whose revenue rose by 33% to RMB 4.2 billion.
On the positive side, analysts are optimistic that the company will return to growth this year. Yahoo Finance data shows that the average estimate is that its revenue will jump to RMB 136 billion this year, up sharply from the 129 billion it made in 2025.
Baidu stock price technical analysis
The daily timeframe chart shows that the Baidu share price bottomed at $74.20 in 2024 and then started a bull run. It peaked at $141.1 in October last year and then retreated to $105 as its advertising woes continued.
Baidu has now rebounded and moved to the highest point in years. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA).
The stock formed an inverse head-and-shoulders pattern, a common bullish reversal sign. It has also moved above the weak, stop & reverse level of the Murrey Math Lines tool.
Therefore, the most likely forecast is where it jumps to the ultimate resistance at $150, which is up by 7.2% from the current level. A surge above that will push it to the extreme overshoot level at $175.
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