Baidu Shares Rise as It Assesses Chip Unit Spinoff

Investors could grow more confident in Baidu's outlook and share-price performance given its growing AI-related revenue and commitment to shareholder returns, Citi analysts say in a research note. Management reiterated Baidu's goal of exploring various shareholder return programs at a Citi event, the analysts say. Baidu thinks that the development of its self-designed chips and integration of heterogeneous domestic resources into unified GPU clusters have enhanced its super-computing capability and mitigated supply risk, the analysts note. Citi opens a 90-day upside catalyst watch on Baidu's ADR as the bank likes the tech giant's continued investment in upgrading its Ernie model and AI agents. ADR last ended at US$125.66.(sherry.qin@wsj.com)

Robotaxi companies that can adeptly navigate capital markets and local policy landscapes are likely to be the winners in scaling up, says Macquarie analyst Eugene Hsiao in a note. Currently, L4 fully autonomous robotaxi operators like Waymo, Tesla, Baidu, Pony AI and WeRide are in a race to commercialize new business models alongside partners that include major tech firms, ride-hailing platforms Uber and Didi, as well as automakers like Geely. Speed of execution is critical in sustaining their first-mover advantage and creating lasting network effects, he says. Instead of technology, the analyst sees fundraising, regulatory acceptance and partnerships as the core bottlenecks. Over the next two to three years, L2 autonomous-driving-assistance players are likely to move aggressively into the L4 space and create new alternatives, he says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)