HK Stock Market Move | BIDU-SW (09888) rose by more than 4% again, Kunlun Core's valuation is targeting $50 billion and the AI transformation deepens, opening up space for value reassessment.

BIDU-SW (09888) rose more than 4% again, up 4.03% to HK$108.5 as of the time of publication, with a trading volume of HK$6.07 billion. On the news front, it was reported recently that Baidu's AI chip subsidiary Kunlun Chip plans to list in Hong Kong with a target valuation of $50 billion (approximately 339.8 billion RMB). According to reports from "Caijing," a source familiar with the matter said that investors who want to get a share of the company's stock must first purchase Kunlun Chip's products. The source added that Kunlun Chip is currently very hot in both chip procurement and stock subscription, and Tencent is also a customer of Kunlun Chip. BOCOM INTL recently pointed out in a research report that Baidu's AI transformation is accelerating and deepening since 2025, with new AI businesses accounting for 52% of Baidu's general business in 1Q26. However, the firm believes that the market may not have fully revalued Baidu's growth in AI new businesses. They are optimistic that the company may reach a turning point in profitability in 2H26, with the proportion of AI new businesses continuing to increase from 2026 to 2028.