Baidu Posts Dramatic Intraday Reversal on Nasdaq, Ends at $104 as AI Chip Subsidiary Targets $50-bn Hong Kong IPO

New York / Mumbai, June 29: Shares of Beijing-based internet giant Baidu, Inc.’s ADSs traded on Nasdaq rallied on Friday after plunging in pre-market trade. By the market close BIDU had established itself well-above Thursday’s $103.99 closing price at $104.00. 

Shares of Baidu hit an intraday low of $100.32 early in the session before staging a dramatic reversal between approximately 9: 30 AM ET and 10:00 AM ET just after the Nasdaq market open. Buoyed by a spike in volume, shares of BIDU jumped above $104 within minutes of opening strong and traded in a relatively tight range between $104.00 and $104.63 through the afternoon. An attempt at a late dip around $103.50 just after 4: 00 PM ET was met with heavy volume before being rejected and the stock drifted quietly above $104 through after-hours trading until 8:00 PM ET. 

Baidu ended Friday’s session with a market capitalization of $35.46 billion on volume of 1,666,961 shares, well below its average daily volume of 2,468,943. Given the stock’s limited movement throughout the day and continued analyst target price of $180 just over $1 year from now it’s likely fewer sellers existed than buyers during the rally rather than aggressive buying across the board. 

Kunlunxin: Baidu’s Artificial Intelligence Chip Subsidiary Plans $50 Billion IPO in Hong Kong 

The strong buying pressure on Baidu began Monday after The Information reported citing two sources familiar with the matter that Kunlunxin, Baidu’s artificial intelligence chip arm is targeting a $50 billion valuation for its upcoming IPO on the Hong Kong Stock Exchange. Investors were being asked to buy chips made by Kunlunxin that are worth three to seven times the value of the subscription they planned to make for Kunlunxin’s IPO, according to people familiar with the matter. That would effectively require would-be IPO investors to also become customers of Kunlunxin chips. 

The news comes after Baidu confirmed in January of 2026 that Kunlunxin had submitted a confidential listing application to Hong Kong’s exchange, taking the first step needed for what would become a subsidiary spin-off. Shares of Baidu traded in Hong Kong rose over 7% Monday on the news. 

Kunlunxin was established in 2011 and supplies chips predominantly to Baidu, though its client list is growing. Reuters reports ByteDance, TikTok’s parent company, is said to be “exploring” Kunlunxin chips while Chinese tech giant Tencent is already a customer. 

At $50 billion, Kunlunxin would become one of the largest Hong Kong technology IPOs of recent years. The news comes as China’s onshore technology IPO market is poised for its strongest year since 2023, with authorities actively promoting chip companies and artificial intelligence firms listings as Beijing doubles down on technology self-sufficiency. American semiconductor companies dominate the AI hardware stack by most accounts, but analysts at Brussels-based think tank Bruegel have said signals Chinese tech can catch up exist and are strengthening. 

Source

• https://www.nasdaq.com/market-activity/stocks/bidu