Baidu Soars as Bold AI Chip Spin-Off Ignites Hopes

Baidu ( (BIDU) ) has risen by 18.52%. Read on to learn why.

Baidu’s shares have jumped 18.52% over the past week as investors piled into the Chinese tech group on hopes that its big bet on artificial intelligence is starting to pay off. The main catalyst has been Baidu’s decision to spin off its AI chip arm, Kunlunxin, via a planned Hong Kong listing, a move seen as a way to unlock value in the semiconductor business and attract specialist chip investors. The news helped fuel a strong rebound in the stock, which is now trading comfortably above its 50‑day moving average and flashing multiple bullish technical signals.

Kunlunxin sits at the heart of Baidu’s ambition to build a full‑stack AI ecosystem spanning chips, data centers, and generative‑AI applications like its Ernie models. By separating the unit, Baidu aims to give Kunlunxin more funding options, higher visibility and a clearer valuation, while still retaining control as a subsidiary. Traders have also taken comfort from TipRanks technical indicators, which show the stock in a confirmed uptrend, as well as momentum gauges like Williams %R and Rate of Change pointing to further upside. On Wall Street, analysts maintain a Strong Buy consensus on Baidu, with average price targets still implying additional gains from current levels.

The rally comes despite lingering concerns around Baidu’s fundamentals, including a recent quarter marked by falling revenue and a GAAP net loss, plus intensifying competition from open‑source AI models, rival cloud providers and shifting chip supply dynamics in China. Regulatory approval for the Kunlunxin IPO is not guaranteed, adding another layer of uncertainty. Even so, the combination of a high‑profile AI spin‑off plan, improving technical sentiment and robust analyst support has been enough to push Baidu’s stock sharply higher this week, as investors bet that 2026 could mark a broader AI‑driven rebound for the company.