Baidu Begins 2026 With A Strong AI Move, Stock Soars

Global investors are closely watching how Chinese tech giants unlock value from their artificial intelligence businesses, and Baidu Inc.  (NASDAQ:BIDU) is taking a significant step in that direction.

Baidu Plans Hong Kong Spinoff of AI Chip Unit

Baidu stock gained on Friday after the company shared plans to spin off and separately list Kunlunxin, its AI chip unit, on the Hong Kong Stock Exchange.

The company said the proposed spinoff would allow Kunlunxin, a non-wholly owned subsidiary, to operate as a standalone public company, highlighting its value to investors focused on AI chips while expanding its financing options and strengthening management accountability.

Baidu owns 59% of Kunlunxin, CNBC reported on Friday.

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Baidu expects Kunlunxin to remain a subsidiary after the listing.

Listing Details Still Unclear

Baidu has already submitted a listing application to the Hong Kong Exchange to seek approval for Kunlunxin's H-share offering.

The company said the move aims to raise Kunlunxin's market profile and better align its growth with investor expectations in the AI semiconductor space.

Key details of the spinoff remain undecided.

The plan still requires regulatory approvals.

Baidu cautioned that there is no certainty the spinoff will proceed or when it might occur.

China Chip Push

The plan comes as U.S.–China technology tensions persist.

Restrictions from Washington and Beijing have limited Chinese firms' access to cutting-edge AI chips from Nvidia Corp (NASDAQ:NVDA).

Chinese policymakers have encouraged domestic chip adoption and directed billions of dollars toward local semiconductor development.

Reuters previously reported that Kunlunxin's revenue exceeded 3.5 billion yuan ($500 million) last year and reached breakeven, with external customers expected to contribute more than half of revenue in 2025.

The unit also secured more than 1 billion yuan in orders from suppliers to China Mobile, which participated in Kunlunxin's latest funding round that raised over 2 billion yuan and valued the business at roughly 21 billion yuan.

Baidu stock gained 58% in the last 12 months, driven by investor optimism surrounding its aggressive artificial intelligence strategy.

JPMorgan analysts have forecast that Kunlunxin's chip sales could rise sixfold to 8 billion yuan by 2026.

Still, analysts caution that Kunlunxin cannot fully replace Nvidia's most advanced chips.

Kunlunxin is expected to work alongside domestic peers such as Huawei Ascend, Cambricon, and Alibaba Group Holding Limited (NYSE:BABA)

to help build a broader homegrown AI computing ecosystem.

BIDU Price Action: Baidu shares were up 11.94% at $146.26 during premarket trading on Wednesday. The stock is trading near its 52-week high of $149.51, according to Benzinga Pro data.

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