On December 4, 2025, it was reported that HSBC Holdings PLC reduced its stake in Baidu Inc. by 44.6% during the second quarter, selling 109,157 shares. The remaining holdings were valued at $11.62 million. This divestment by a major institutional investor occurs as the market continues to evaluate Baidu's long-term value, particularly concerning its heavy investments in artificial intelligence and custom AI chips. While this specific transaction is a notable move by a single entity, it is part of a broader context of ongoing adjustments in institutional holdings. Concurrently, discussions around Baidu's valuation remain active, with some analyses suggesting the company may be undervalued given the potential of its AI-driven initiatives, including its Apollo Go autonomous driving service and AI cloud solutions.