On September 17th, Baidu's (09888.HK) Hong Kong-listed shares experienced a remarkable surge, climbing up to 15% during trading hours. This marked the stock's most significant increase since March 2023 and propelled it to its highest level since October 2023. Prior to this, Arete Research Services LLP had upgraded Baidu's American Depositary Receipts (ADR) from a 'Sell' to a 'Buy' rating. This upgrade was particularly noteworthy as it represented the first time the institution had issued a buy recommendation for Baidu since downgrading its rating in May of the previous year.

Amid escalating market enthusiasm for Baidu's strategic direction, the company's stock price has witnessed a remarkable rally of over 45% this month, outpacing its industry counterparts. Initially met with skepticism, analysts have now begun to embrace a more optimistic outlook on Baidu's artificial intelligence endeavors. Arete analysts Shawn Yang and Richard Kramer highlighted that the growth prospects of Baidu's chip business are anticipated to fully counterbalance the hurdles encountered by its online advertising division.