Baidu Ignites 9% Surge—What’s Fueling the Autonomous Drive?

• Baidu (BIDU) surged 9.0% intraday to $93.60, hitting a session high of $94.32.
• A landmark Uber partnership to deploy autonomous vehicles globally sparked the rally.
• The stock trades at a 7.56x dynamic PE, below its sector leader NVIDIA (NVDA) which rose 3.96% today.
• Volume spiked to 10.5 million shares, 3.77% turnover signaling heightened investor interest.

Baidu’s explosive rally on Tuesday marked its strongest single-day performance in years, driven by a transformative partnership with Uber. The collaboration to deploy thousands of driverless vehicles globally signals a bold expansion into autonomous mobility—a sector with massive scalability. Traders now focus on whether this catalyst can sustain momentum beyond the initial surge.

Uber Partnership Ignites Autonomous Mobility Momentum
Baidu’s stock exploded higher on news of a multi-year strategic partnership with Uber to deploy its Apollo Go autonomous vehicles globally. The alliance targets markets outside the U.S. and mainland China, with initial deployments in Asia and the Middle East expected by year-end. This strategic move leverages Uber’s 170M monthly active users to scale Baidu’s autonomous fleet—already operating over 1,000 vehicles across 15 cities. The partnership directly addresses Baidu’s need to monetize its AI-driven autonomous technology beyond its core search business, positioning it as a leader in global mobility innovation.

Technical Bull Case and Options to Exploit Autonomous Momentum
• Technical Indicators:
- MACD (0.35) > Signal Line (0.29), bullish crossover confirmed.
- RSI 56.57: neutral, above oversold 30 threshold.
- Bollinger Bands: Price above middle band ($86.61), testing upper band ($89.95).
- 30D MA ($86.30) holds support; 200D MA ($89.35) remains resistance.

Baidu’s breakout above $90 suggests bullish momentum, with $85.75-85.92 as near-term support. Aggressive bulls should target $95-$100, while a close below $90 risks retracement.

Top Options Picks:
1. BIDU20250725C94 (Call, Strike $94):
- Delta 0.495, Gamma 0.066, Theta -0.287.
- Leverage ratio 40.87%, IV 37.36%.
- Why: A sweet spot for directional bets. With theta decay and gamma exposure, this contract gains sharply if the stock tests $95+ by expiry.
2. BIDU20250725C93 (Call, Strike $93):
- Delta 0.557, Gamma 0.059, Theta -0.318.
- Leverage ratio 30.89%, IV 41.08%.
- Why: Higher gamma offers asymmetric reward/risk. At current price ($93.60), this contract already has intrinsic value, making it a safer entry point.

In a 5% upside scenario ($98.58), C94 payoff would be $4.58/share, while C93 reaches $5.58. Aggressive bulls may layer C94 into a $95+ target, while C93 serves as a tactical entry. Monitor RSI for overextension risks.

Backtest Baidu Stock Performance
The backtest of BIDU's performance after a 9% intraday surge shows mixed results. While the 3-day win rate is 47.51%, the 10-day win rate is slightly lower at 47.34%, and the 30-day win rate is 48.71%. The maximum return during the backtest period was 0.38%, which occurred on day 45, indicating that while there is a good chance of positive returns, the overall performance is modest.

Baidu’s Autonomous Ambition—Hold or Hesitate?
Baidu’s partnership-driven rally faces two critical tests: execution speed of the Uber rollout and competition in autonomous tech. While the 9% surge reflects optimism, traders must watch the $95-$100 resistance zone and sector leader NVIDIA’s (NVDA +3.96%) AI advancements. Investors holding through the $85.75 support should consider scaling into calls like BIDU20250725C94, but a breakdown below $86 invalidates the bullish narrative. Final Take: Ride the autonomous wave—but keep an eye on the rearview mirror for technical signals.