HK Stock Market Move | Baidu-SW (09888) surged over 7% in the afternoon, reports say its subsidiary Kunlun Xintech plans to go public in Hong Kong.

BIDU-SW(09888) rose sharply in the afternoon, at one point gaining over 7%, and as of the time of writing, it was up 4.49% to HK$120.9 with a trading volume of HK$16.48 billion. On the news front, it was reported that Baidu's semiconductor subsidiary Kunlun Core is planning to list in Hong Kong. Kunlun Core recently raised $283 million, valuing the company at $2.97 billion. Kunlun Core Technology, formerly known as Baidu Intelligent Chip and Architecture Division, completed independent financing in April 2021. It is worth mentioning that on November 13th, Baidu launched two new AI chips, Kunlun Core M100 and Kunlun Core M300, as well as two new super nodes, Baidu Tianchi 256 super node and Baidu Tianchi 512 super node, and announced the Kunlun Core's five-year roadmap. JPMorgan believes that Baidu's investment narrative is undergoing a fundamental change: the company is transitioning from a traditional search advertising company to an AI infrastructure provider. It is expected that sales of Kunlun Core chips and GPU computing demand will drive significant revenue growth. JPMorgan predicts that Baidu's Kunlun Core chip revenue will skyrocket from approximately RMB 1.3 billion in 2025 to RMB 8.3 billion in 2026, a six-fold increase.