Baidu Shares Surge Nearly 9% in Hong Kong on AI Chip Excitement

Baidu's Hong Kong-listed shares (BIDU-SW) surged 8.9% on Tuesday, closing at $129.7.

Investor optimism surrounding the company's Kunlun artificial intelligence chip division fueled the rally. This momentum reflects growing market anticipation for Baidu's semiconductor developments, a key focus area for Chinese technology firms.

Adding to the positive movement, SWS Research upgraded Baidu's stock from "Add" to "Buy." The firm set a new price target of HK$172.54.

The combination of the analyst upgrade and excitement over its AI chip strategy highlighted investor confidence in the company's AI-centric growth prospects.