US Stock Market Move | Kunlun Core has secretly gone to Hong Kong for an IPO Baidu Inc Sponsored ADR Class A (BIDU.US) soared more than 10% before the market opened.

On Friday, Baidu Inc Sponsored ADR Class A (BIDU.US) soared over 10% in pre-market trading to $144.10. In addition, today Baidu Inc Sponsored ADR Class A (09888) in the Hong Kong stock market also rose over 9%, reaching a two-year high. In terms of news, Baidu Inc Sponsored ADR Class A group announced that Kunlun Semiconductor has submitted a listing application form (Form A1) to the Hong Kong Stock Exchange through its joint sponsors in a confidential manner on January 1, 2026, to apply for approval for Kunlun Semiconductor shares to be listed and traded on the main board of the Hong Kong Stock Exchange. It is expected that Kunlun Semiconductor will remain a subsidiary of the company after the spin-off. Public information shows that Kunlun Semiconductor, formerly known as the Baidu Inc Sponsored ADR Class A Intelligent Chip and Architecture Division, focuses on the design and production of general AI chips. Its products are widely used in data centers, cloud computing, and autonomous driving, among other fields. J.P. Morgan predicts that the company's revenue will skyrocket from 1.3 billion RMB in 2025 to 8.3 billion RMB in 2026, an increase of 6 times. Credit Suisse's research report pointed out that the spin-off will effectively unlock the market value of Kunlun Semiconductor, with its overall valuation estimated to be between 16 billion and 23 billion US dollars. Based on Baidu Inc Sponsored ADR Class A's 59% ownership, the value of this asset is approximately 9 billion to 13 billion US dollars. Therefore, Credit Suisse has raised Baidu Inc Sponsored ADR Class A's target price by 14% to 176 HKD and maintains a "buy" rating.