Baidu Group-SW (09888) experienced a significant intraday surge, with its stock price soaring 5.06% during Wednesday's trading session.

The sharp rise appears driven by positive analyst sentiment and optimism surrounding the value of its semiconductor subsidiary. Macquarie recently published a research note raising Baidu's target price from HK$169 to HK$181 while maintaining its Outperform rating. The broker highlighted that Baidu's subsidiary Kunlun Chip is projected to achieve FY2026 revenue growth of over 100% year-over-year to approximately RMB 8.5 billion, with steadily expanding margins.

Macquarie assigns Kunlun Chip a valuation of approximately US$48 billion, with Baidu's 59% stake equivalent to US$82.5 per share in equity value, expecting significant value release post-listing. This aligns with sustained market optimism around Baidu's AI transformation and the valuation re-rating tied to the Kunlun Chip spin-off IPO, which targets a valuation of approximately US$50 billion upon its planned Hong Kong listing.