Baidu Shares See AI Boost

Baidu's shares in Hong Kong experienced a significant surge, marking the largest jump in over three years, fuelled by increasing optimism surrounding the company's potential in AI chip development. This surge is attributed to Baidu's strategic shift towards in-house AI chips, specifically the Kunlun series, to decrease reliance on foreign technology and enhance its global AI infrastructure competitiveness. The company has begun utilising its Kunlun P800 chip to train its Ernie large language models, partially replacing Nvidia chips.

This move aligns with China's broader initiative to achieve semiconductor independence amidst US export restrictions, which have led Chinese regulators to discourage the use of Nvidia's H20 chips. Baidu's AI Cloud business contributed significantly to its revenue, exceeding RMB10 billion in Q2 2025, signalling the maturation of its AI-native offerings. Furthermore, Baidu's stock has outperformed tech indices since 2024, reflecting investor confidence in its AI roadmap.

Analysts have also upgraded Baidu's American depositary receipts from 'sell' to 'buy', citing a brighter outlook for its AI chip and cloud-computing business. Baidu's strategic partnerships with companies like China Mobile and China Merchants Group, to apply AI across various sectors, further contribute to investor confidence.