Baidu Inc. Stock Dives 2.33% Amid Kunlunxin Spinoff Uncertainty, Regulatory Delays Weigh On Shares

The share price fell to its lowest level since December 2025, with an intraday decline of 2.33% so far this month.

Baidu Inc.’s stock slump reflects uncertainty surrounding its proposed spinoff of Kunlunxin, an AI chip subsidiary, and pending regulatory approvals. The company filed for a Hong Kong IPO of Kunlunxin to unlock value and boost market visibility, but delays in approvals from the Hong Kong Stock Exchange and China Securities Regulatory Commission have introduced volatility. Analysts estimate Kunlunxin’s standalone valuation at $16–23 billion, yet regulatory and geopolitical risks, including U.S. export controls on advanced chips, remain unresolved. The move aligns with Baidu’s broader strategy to strengthen domestic AI hardware capabilities, but short-term investor confidence appears shaken by the prolonged timeline.

Despite the recent decline, Baidu’s AI-driven ecosystem—encompassing cloud services, autonomous driving, and self-sufficient chip production—remains a focal point for long-term growth. The firm’s Kunlunxin P800 chips now power its Ernie AI models and third-party clients, reducing reliance on foreign semiconductors. However, the stock’s sharp reversal from a 9.7% premarket surge following the IPO filing to a fresh monthly low underscores market skepticism over execution risks. While the AI Cloud segment grew 21% year-over-year in Q3 2025, investors are weighing the spinoff’s potential to attract capital against broader challenges, including regulatory scrutiny and intensifying competition in China’s AI sector.