"Big Banks" JP Morgan: Baidu's pullback creates opportunities, Kunlun Core's fundamentals remain unchanged

JP Morgan published a report stating that the stock prices of Baidu (BIDU.US) in the US market and Baidu-SW (09888.HK) in the H-share market have cumulatively increased by approximately 85% and 89%, respectively, from August 2025 to mid-January 2026. This is mainly due to the market entering a value discovery phase around Baidu's AI infrastructure (led by Kunlun Chip), while the group level also experienced a broader revaluation. Since January 22, 2026, Baidu's US and H-share stocks have corrected by 24% and 22%, respectively. The bank believes that this correction is primarily due to a shift in capital style from Baidu to "pure AI" listed companies (such as ZhiPu AI and MiniMax), rather than a change in the fundamentals of Kunlun Chip.

The bank believes that this capital rotation creates investment opportunities, as its research indicates that Kunlun Chip's long-term profit potential is higher and more defined than that of China's listed model development companies. The bank has independently valued Kunlun Chip at $40 billion to $49 billion, while Baidu's current market capitalization is only $43 billion. As the catalysts for Kunlun Chip's IPO become more specific, the bank recommends that investors accumulate Baidu's US and Hong Kong stocks during price weakness. JP Morgan has set a target price of $200 for Baidu's US stock and HKD 195 for its Hong Kong stock, with a rating of "Overweight" for both