On Wednesday, the share price of Baidu Inc., at the time of 10.39 a.m. China time was at HKD 126.40, a HKD 13.2 or 11.66% increase.
Baidu’s shares surged after Arete Research issued an upgrade from “Sell” to “Buy”, highlighting the company’s strong fundamentals and growth prospects in artificial intelligence, cloud computing, and smart driving technology. Arete’s positive assessment underscores confidence in Baidu’s outlook, particularly as the company intensifies investment in its core businesses.
The Chinese tech giant operates through two primary segments: Baidu Core and iQIYI, with a strategic focus on search, feed-based content, and AI-powered services. Analysts point to Baidu’s ongoing commitment to these areas as instrumental to its anticipated growth trajectory.
In a notable development, Baidu has accelerated efforts to develop proprietary AI chips, a move that reduces its dependence on overseas semiconductor suppliers. According to a report from The Information, Baidu is currently trialing its Kunlun P800 chip, designed to train advanced iterations of its Ernie AI models. This initiative aligns with a broader shift among mainland technology firms seeking alternatives to U.S. components in response to tightening export restrictions on high-end AI hardware.
Baidu’s gains were further buoyed by increased enthusiasm around AI equities, spurred in part by Oracle Corporation’s recently announced multi-billion-dollar agreements with AI-driven enterprises. These factors position Baidu to benefit from rising global demand for next-generation artificial intelligence and digital technologies.
