Baidu shares dropped 2.68% to $153.29, declining alongside the broader tech sector due to sustained investor concerns regarding the high costs associated with AI infrastructure investment.
- The decline occurred despite recent positive analyst reports that valued the company's Kunlun Chip asset for the first time.
- This negative pressure overshadowed Baidu's announcement of a 500 million yuan red envelope campaign aimed at boosting user traffic for its Wenxin Yiyan AI assistant ahead of the Chinese New Year.