Baidu has filed for an IPO for its chipmaking unit, Kunlunxin, on the Hong Kong Exchange, sparking investor interest in the hidden value of the tech giant. Baidu owns about 59% of Kunlunxin, estimated at a valuation of $3 billion. Despite revenue declines, Baidu’s stock surged 13.1% on the news, reaching its highest price since 2023. However, the strong gains may be more than warranted, considering the unit’s valuation. The move is seen as unlocking value for Baidu, which spans search, self-driving, cloud, and AI businesses. The rise in stock price could be attributed to enthusiasm over AI and next week’s CES.

Read more at Yahoo Finance: Why Baidu Is Soaring Today