U.S. Stock Movement | Baidu rises over 6% as institutions estimate Kunlun Chip's valuation could reach HKD 100 billion
On Wednesday, Baidu's stock price rose by over 6%, closing at $131.89. Kunlun Core received significant orders in China Mobile's AI server project, with an estimated valuation reaching HKD 100 billion. According to analysis from China International Capital Corporation, Kunlun Core's market share and brand influence will further expand, and future revenue is expected to grow rapidly
According to Zhitong Finance APP, on Wednesday, Baidu (BIDU.US) rose by over 6%, closing at $131.89. It is reported that in August this year, Baidu's AI server products based on Kunlun chips secured 70%, 70%, and 100% of the shares in bidding packages 1, 2, and 3 respectively in China Mobile's centralized procurement project for general-purpose AI computing devices (inferencing type) for 2025-2026, ranking first in all three packages, with the scale of the winning orders reaching the billion level. CICC stated in its research report that the market value of Cambricon in A-shares has reached $80 billion, while other domestic GPU companies listed in Hong Kong are expected to be valued between HKD 30 billion and 100 billion, and Kunlun's valuation should be at the top of this range.
Professionals analyze that Kunlun's early development mainly relied on internal business needs of Baidu for technology validation and product iteration, deploying tens of thousands of chips in businesses such as Baidu's search engine and Xiaodu. It has since gradually expanded into industries such as the internet, finance, industrial manufacturing, and smart transportation. Now, by winning operator projects, Kunlun is further expanding its market share in the telecommunications industry and establishing brand influence among a broader customer base. This winning bid for China Mobile's billion-level project will bring direct revenue growth to Kunlun. Zhang Guobin estimates that based on the project scale and winning share, this project is expected to bring hundreds of millions or even higher revenue to Kunlun.
In addition, as Kunlun continues to expand into other industries and its products are implemented, its revenue is expected to maintain rapid growth in the coming years. For example, the application of Kunlun's P800 accelerator card and other products in multiple industries, as well as its cooperation with core distributors such as China Electronics Port, will further expand its market share and revenue scale
