Baidu's stock experienced a significant surge, rising 5.49% during the overnight session.

The primary catalyst for the move was the official commencement of the dual listing process for Baidu's AI chip subsidiary, Kunlunxin (also referred to as Kunlun Chip). The unit has initiated its listing tutoring for the Shanghai STAR Market and has a confidential application pending with the Hong Kong Stock Exchange. Analysts value this unit highly, with J.P. Morgan assigning it an independent valuation of $40-49 billion, and Haitong International Securities estimating it could contribute approximately $48.7 billion in market value to Baidu.

Sentiment was further bolstered by investment bank upgrades. Nomura raised its price target on Baidu, while Haitong International also increased its target, citing better-than-expected first-quarter results. The banks highlighted the strong performance of Baidu's AI business, where AI-driven revenue surged 49% year-over-year, accounting for over half of Baidu Core revenue for the first time.