Baidu's stock experienced a pre-market plunge of 6.81% on Tuesday, extending recent losses for the Chinese tech giant.

The decline follows a Barclays price target reduction on Baidu from $128 to $124 with an Equal Weight rating maintained, signaling concerns about the company's future earnings potential. Additionally, Goldman Sachs issued research highlighting that profitability for Chinese internet companies like Baidu continues to be pressured by subsidy losses and elevated AI-related capital expenditures, undermining near-term earnings confidence.

Broader market sentiment was also dampened by geopolitical tensions, with former U.S. President Donald Trump announcing plans to take control of the Strait of Hormuz and charge a toll on cargo shipments. The AI chip sector faced selling pressure as major institutions warned about the sustainability of recent rallies, contributing to negative sentiment across technology stocks.