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    Baidu (BIDU) Is Up 8.1% After Dubai Robotaxi Permit And Kunlunxin IPO Plan - Has The Bull Case Changed?

    Simply Wall St·01/08/2026 23:43:57
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    • Baidu’s Apollo Go unit recently received Dubai’s first permit for fully driverless vehicle trials and opened its 2,000-square-meter Apollo Go Park, while Baidu is also preparing a Hong Kong IPO for its AI chip subsidiary Kunlunxin with Baidu retaining majority ownership.
    • Together, the Dubai driverless permit and Kunlunxin listing plan highlight how Baidu is extending its AI ecosystem across both global mobility services and semiconductor hardware.
    • We’ll now examine how Baidu’s planned Kunlunxin IPO could influence the company’s existing investment narrative around AI, cloud, and autonomy.

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    Baidu Investment Narrative Recap

    To own Baidu today, you need to believe its heavy AI spending across search, cloud, chips and autonomy can eventually translate into healthier margins, despite recent earnings pressure and negative free cash flow. The Dubai Apollo Go permit and planned Kunlunxin IPO reinforce that AI-first narrative but do not fundamentally change the near term tension between rising AI investment and still-limited AI monetization in core search and cloud, which remains a key risk.

    The planned Hong Kong IPO of Kunlunxin, with Baidu retaining majority ownership, looks most relevant here because it formalizes Baidu’s push to control its AI computing stack while supporting Apollo Go’s global rollouts. For investors focused on catalysts, Kunlunxin’s separate listing could clarify chip economics and capital needs just as Baidu scales AI cloud and fully driverless services, providing more transparency around how these newer businesses might eventually offset pressure in legacy online marketing.

    Yet behind the excitement around Apollo Go and Kunlunxin, investors should be aware that Baidu’s negative free cash flow and margin pressure could persist if AI initiatives do not...

    Read the full narrative on Baidu (it's free!)

    Baidu's narrative projects CN¥150.8 billion in revenue and CN¥22.3 billion in earnings by 2028.

    Uncover how Baidu's forecasts yield a $151.99 fair value, a 8% upside to its current price.

    Exploring Other Perspectives

    BIDU 1-Year Stock Price Chart
    BIDU 1-Year Stock Price Chart

    Fifteen Simply Wall St Community fair value estimates for Baidu span roughly US$71 to US$219 per share, underscoring how far apart individual views can be. Against that wide range, the key question many are asking is whether Baidu’s heavy AI and cloud investment can overcome current margin pressure and negative free cash flow, or if those same commitments could weigh on performance for longer than expected.

    Explore 15 other fair value estimates on Baidu - why the stock might be worth 50% less than the current price!

    Build Your Own Baidu Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Baidu research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
    • Our free Baidu research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baidu's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.