New York, Jan 22, 2026, 07:56 EST — Premarket
Baidu, Inc.’s shares listed in the U.S. jumped 8.2% to $162.28 in early trading Thursday, following a close at $150.03. The surge came after the company launched the official release of its Ernie 5.0 AI model during a Shanghai event. In Hong Kong, Baidu’s shares gained roughly 4%. (AAStocks)
Timing is crucial for Baidu as investors now value Chinese tech stocks based on AI product rollouts, rather than solely on advertising trends. Nailing the launch is just the start. The real challenge lies in converting that into actual paid usage, and the market has shown little patience.
Baidu has long pitched itself as China’s leading AI platform player. This latest release raises questions about whether its models can attract cloud customers and developer spending, all while managing costs effectively.
China’s Xinhua news agency reported that the official Wenxin Big Model 5.0, also called Ernie 5.0, packs 2.4 trillion “parameters”—those adjustable weights crucial for learning and output. According to Xinhua, Baidu said the model is a native multimodal system, capable of processing text, images, audio, and video. It employs a sparse “mixture-of-experts” architecture, activating only a small portion of the network for each task. (Xinhua News)
Baidu’s AI assistant has hit 200 million monthly active users, according to the South China Morning Post, expanding its consumer base as the company rolls out its latest model. At Davos, Google DeepMind CEO Demis Hassabis noted that China’s AI models may lag U.S. rivals by about “six months” — a stark reminder of how quickly the AI race evolves and buzz can fade. (South China Morning Post)
Baidu announced it will release its fourth-quarter and full-year 2025 earnings before U.S. markets open on Feb. 26, with a conference call scheduled for 7:30 a.m. Eastern time that same day. (PR Newswire)
Jefferies analyst Thomas Chong stuck with a Buy rating and pegged a $181 price target, per a TipRanks report. He’s betting Baidu Core will bounce back to sequential revenue growth as its AI-driven cloud infrastructure segment gains traction. (TipRanks)
U.S. stock index futures edged up Thursday morning, showing a more positive tone in the broader market. China ADRs were also active, with Alibaba gaining ground following a Reuters report that the company is gearing up to spin off its chip division. (Reuters)
The downside is straightforward. New models can burn cash quickly if inference demand grows faster than pricing allows. Meanwhile, competitors might erode returns by slashing prices or launching similar models. If ad demand remains weak, margins will tighten further.
Traders will be closely tracking if the premarket surge sticks when U.S. markets open. Attention may then pivot from the launch to the next major event: Baidu’s Feb. 26 earnings report, which could shed light on Ernie 5.0 adoption, pricing strategies, and cloud demand.
