Shares of Chinese tech giant Baidu (BIDU) are soaring 5.09% in pre-market trading on Monday, building on the momentum from its 5.9% rise in Hong Kong. The stock's surge is fueled by renewed optimism in Chinese tech stocks and Baidu's recent strategic moves in artificial intelligence (AI) and autonomous driving.

Baidu recently announced a partnership with Switzerland's public transport operator, PostBus, to launch the autonomous mobility service "AmiGo" in Switzerland. The initiative aims to begin fleet testing in eastern Swiss regions by December, with plans to transition to fully autonomous operations in the near future. This expansion into the European market showcases Baidu's growing global presence in the autonomous driving sector.

Analysts are also reassessing Baidu's valuation logic, shifting focus towards its AI capabilities. CCB International reports that considering Baidu's cloud and AI applications, along with the autonomous driving industry's valuation metrics, the company's core search business appears undervalued at current prices. As Baidu continues its transformation into an AI-driven company, investors anticipate a potential long-term value reassessment, driving the stock's current upward momentum.