On June 30, Baidu Group-SW rose 4.89% in regular trading, trading at 110.0 HKD/share, with turnover of HKD 174 million. The rally was driven by continued momentum from reports that Baidu's AI chip subsidiary Kunlun Chip is planning a Hong Kong IPO with a target valuation of approximately $50 billion.

The target valuation significantly exceeds Baidu's own market capitalization of roughly $35.8 billion, highlighting the potential value unlock from the spinoff. Reports indicate that Tencent has already become a Kunlun Chip customer, while ByteDance is also considering adopting its AI chips. Notably, IPO investors are reportedly required to commit to purchasing Kunlun Chip products worth 3 to 7 times their subscription amounts, reflecting a bundled sales strategy to lock in downstream demand.

Kunlun Chip's flagship P800 product has completed large-scale deployment validation, with external commercial revenue now exceeding internal supply to Baidu. BOCOM International maintains a Buy rating with a raised target price of $175, expecting an earnings inflection point in the second half of the year. Citi has also initiated a 30-day positive catalyst watch on Baidu.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)