Baidu Surges 4.76% on $1.03B Trading Boom as AI Chips Power 69th-Market Activity Rank

Baidu Inc. (NASDAQ:BIDU) rose 4.76% on August 29, with a trading volume of $1.03 billion, a 333.59% increase from the previous day, ranking 69th in market activity. The stock’s performance was driven by developments in its AI and semiconductor initiatives, particularly through its majority-owned subsidiary Kunlunxin. The company announced a $139 million AI chip order for China Mobile, marking a significant contract for its domestic chip production. The Kunlunxin chips, compatible with Nvidia’s CUDA platform, are set to be supplied to major vendors like H3C Technologies and ZTE, aligning with China’s push to reduce reliance on foreign GPU technology. This move underscores Baidu’s strategic role in advancing local AI infrastructure and competing in the global semiconductor market.

Recent partnerships and deployments highlight Baidu’s expanding influence in AI development. Earlier this year, the company deployed 30,000 third-generation P800 Kunlun chips to support large-scale AI model training, reinforcing its position alongside Huawei’s Ascend in the domestic GPU landscape. The integration of CUDA-compatible chips offers cost-effective alternatives for developers transitioning from foreign technologies, enhancing Baidu’s competitive edge. Additionally, the company’s AI Cloud division continues to show resilience amid broader advertising revenue challenges, positioning it as a key player in China’s tech self-sufficiency initiatives.

Backtest results indicate the stock’s recent performance aligns with its strategic focus on AI and semiconductor advancements, reflecting investor confidence in its long-term growth potential within the evolving tech sector.