--- title: "Daiwa expects Baidu Kunlun Chip IPO valuation to be higher than peers as AI business momentum continues" type: "News" locale: "en" url: "https://longbridge.com/en/news/277723156.md" description: "Daiwa's research report indicates that Baidu Kunlun Chip's IPO valuation is higher than its peers due to its large revenue scale and strong profitability. Major clients of Kunlun Chip include Tencent, and the management has ensured sufficient chip supply to support future development. The report believes that Baidu's AI business will continue to grow strongly, and the expansion of Apollo Go into international markets will improve profitability. Daiwa reiterates its \"Buy\" rating on Baidu, with a target price of 175 yuan, and maintains its earnings forecast" datetime: "2026-03-04T04:07:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277723156.md) - [en](https://longbridge.com/en/news/277723156.md) - [zh-HK](https://longbridge.com/zh-HK/news/277723156.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277723156.md) | [繁體中文](https://longbridge.com/zh-HK/news/277723156.md) # Daiwa expects Baidu Kunlun Chip IPO valuation to be higher than peers as AI business momentum continues Daiwa Research Report indicates that Baidu (09888.HK) Kunlun Chip's IPO valuation is expected to be higher than its peers due to its larger revenue scale and better profitability. Currently, most of Kunlun Chip's revenue comes from external demand, with major clients including Tencent (00700.HK) and a large telecommunications operator. Management stated that chip production capacity constraints are not a concern for the company in the short term, as Kunlun Chip has ensured sufficient supply to support development over the next two years. In terms of AI business, the firm believes that Baidu's ability to develop high-performance and low-cost lightweight models will continue to drive strong revenue growth. Although the group is expected to maintain a strong pace of AI investment this year, the employee optimization conducted at the end of last year should save operational expenses, helping to support operational efficiency. Regarding the autonomous driving business, the firm expects Apollo Go to further accelerate its expansion in international markets, as higher fares in overseas markets can bring better unit economics; coupled with improved hardware cost efficiency, profitability is expected to improve. The firm reiterates its "Buy" rating on Baidu, with a target price of 175 yuan, and maintains its earnings forecasts for this year and next. Recent catalysts include the listing of Kunlun Chip and details of the dividend plan for 2026 ### Related Stocks - [Guotai CES Semiconductor Chip Industry ETF (512760.CN)](https://longbridge.com/en/quote/512760.CN.md) - [Baidu, Inc. (BIDU.US)](https://longbridge.com/en/quote/BIDU.US.md) - [State Street® SPDR® S&P® Smcndctr ETF (XSD.US)](https://longbridge.com/en/quote/XSD.US.md) - [VanEck Semiconductor ETF (SMH.US)](https://longbridge.com/en/quote/SMH.US.md) - [ChinaAMC Guozheng Semiconductor Chip ETF (159995.CN)](https://longbridge.com/en/quote/159995.CN.md) - [BIDU-SW (09888.HK)](https://longbridge.com/en/quote/09888.HK.md) - [iShares Semiconductor ETF (SOXX.US)](https://longbridge.com/en/quote/SOXX.US.md) - [GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF (512480.CN)](https://longbridge.com/en/quote/512480.CN.md) - [Direxion Daily Semicondct Bull 3X ETF (SOXL.US)](https://longbridge.com/en/quote/SOXL.US.md) - [Invesco Semiconductors ETF (PSI.US)](https://longbridge.com/en/quote/PSI.US.md) - [ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF (588170.CN)](https://longbridge.com/en/quote/588170.CN.md) - [GTJA Allianz SSE STAR Chip Design Thematic ETF (588780.CN)](https://longbridge.com/en/quote/588780.CN.md) - [China Southern CSI Semiconductor Industry Custom ETF (159325.CN)](https://longbridge.com/en/quote/159325.CN.md) ## Related News & Research - [China's Search Giant Baidu Struggles With Weak Ad Spending Despite AI Push](https://longbridge.com/en/news/277056050.md) - [Gobi Partners invests in Cortical Labs, expands biological computing hub](https://longbridge.com/en/news/277719409.md) - [DBS Reaffirms Their Buy Rating on Baidu (BIDU)](https://longbridge.com/en/news/277156503.md) - [J.P. Morgan Sticks to Its Buy Rating for Baidu (BIDU)](https://longbridge.com/en/news/277323585.md) - [Baidu, Inc. Class A (9888) Gets a Buy from GF Securities](https://longbridge.com/en/news/277416318.md)