Barclays: Baidu's Chip Unit IPO Appears on Track

Deep News04-15

Analysts at Barclays stated in a report that the initial public offering (IPO) of Baidu's chip unit, Kunlun Xin, appears to be proceeding as planned. The analysts indicated that the IPO could take place as early as the end of the second quarter or the beginning of the third quarter. Recent industry checks by Barclays suggest the chip division is performing solidly, with the bank anticipating that the majority of its revenue will come from external customers. While the strong growth in Baidu's AI business is encouraging, the analysts expressed ongoing concerns about Baidu's core traditional advertising business. They noted that chatbots are increasingly replacing traditional search use cases, and the opportunity for effective advertising monetization through chatbots remains unclear. Barclays maintained a Neutral rating on Baidu's American Depositary Receipts (ADRs) and kept its price target at $128.00.

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