Baidu to make Hong Kong listing primary on Sept. 1 · TechNode

Citi initiated a 30-day upside catalyst watch for Baidu (BIDU), reiterating a Buy rating and $166 price target. The firm highlights Baidu's AI infrastructure growth, with Q2 2026 AI-powered business revenue up 25% YoY to RMB 12.5B, and AI cloud revenue up 50% YoY. Baidu's stock trades at 17.1x and 13.4x P/E for 2026/2027. Despite AI growth, overall Q2 revenue fell 4% YoY due to advertising declines.

Baidu's shares rose 4% in Hong Kong trading on Friday, according to Investing.com, as investors anticipate potential inclusion in the Stock Connect scheme following its dual-primary listing in Hong Kong and Nasdaq. The company expects this move to enhance liquidity and broaden its investor base. The Hang Seng Index also gained over 2%.

Baidu will become dual-primary listed on the Hong Kong Stock Exchange and NASDAQ on Tuesday, potentially broadening its investor base and enhancing capital-market flexibility. The move allows Baidu to participate in Stock Connect, enabling mainland investors to trade its Hong Kong shares. According to the company, this will improve share liquidity and support its AI strategy. Hong Kong's new listing rules may attract more US-listed Chinese firms.

Baidu reported annual revenue of 129.1 billion yuan with a net profit margin of about 4%. Futu's net profit margin was nearly 50%.

Asian chip stocks showed mixed performance after Nvidia reported strong earnings, with $96.2B revenue and a $108B forecast. South Korean semiconductor stocks rose, while others like Advantest and Disco fell. Nvidia's shares initially dropped but later surged. Investors weighed AI demand against memory costs and margin pressures.

Baidu Inc (NASDAQ:BIDU) announced it will convert its Hong Kong listing to primary from September 1, making it eligible for the Stock Connect program. Shares surged over 6% following the news. The move allows Baidu to access capital from Mainland China and reduces U.S. delisting risks.