Baidu's stock price surged 5.04% intraday, marking a significant upward movement for the technology giant.

The sharp rise follows multiple market reports indicating that Baidu's artificial intelligence chip subsidiary, Kunlunxin, is planning an initial public offering in Hong Kong with a target valuation of approximately $50 billion. According to the reports, potential investors in the IPO are being asked to commit to purchasing Kunlunxin chips worth three to seven times the value of their planned share subscription.

This development represents a potential value-unlocking event for Baidu, which retains a controlling stake in the independently operated chip unit. The planned spin-off and listing come amid a broader push by Beijing to bolster listings of chip and AI companies as part of China's tech self-reliance efforts.