Baidu has introduced a US$5 billion share repurchase program and its first-ever dividend policy. This capital return strategy coincides with the company’s efforts to monetize AI-driven businesses, including autonomous ride-hailing and AI cloud services.
Daiwa reiterated a Buy rating on Baidu, identifying the upcoming IPO of AI chip unit Kunlunxin as a significant catalyst. The firm expects a robust valuation for Kunlunxin driven by its existing revenue and profitability. Kunlunxin has also secured a chip supply sufficient to support development for the next two years.