Baidu shares surge 5.83% after-hours on Kunlunxin spin-off plans and Apollo Go's Dubai driverless permit.

Baidu (BIDU) surged 5.83% in after-hours trading, driven by two key developments: a planned spin-off of its AI chip unit, Kunlunxin, via a confidential Hong Kong listing, and Apollo Go’s receipt of Dubai’s first driverless vehicle trial permit. The spin-off, a strategic move to unlock value and create a pure-play AI hardware investment vehicle, has reignited investor optimism about Baidu’s AI growth potential. Simultaneously, the Dubai permit for Apollo Go’s autonomous ride-hailing service, including a dedicated operations hub, signals progress in global expansion and high-margin recurring revenue opportunities. These catalysts align with analyst upgrades, including Benchmark’s raised price target to $215, and reinforce near-term positive sentiment despite lingering legal risks. The stock’s momentum reflects confidence in Baidu’s ability to capitalize on AI infrastructure and autonomous driving trends.