Kunlun Chip files for IPO in Hong Kong, CICC and Haitong give $50 billion valuation estimate

Glonghui, January 8th | As China's domestic computing power industry enters a critical stage of development, capital markets are increasingly focusing on core chip assets. On January 1, 2026, Baidu officially announced the spin-off of its AI chip subsidiary Kunlunxin and has submitted a listing application to the Hong Kong Stock Exchange. Several institutions, including CICC and Haitong International, have given positive assessments from different perspectives, pushing Kunlunxin's potential valuation expectations to the $50 billion level. In its spin-off valuation model, CICC evaluates Kunlunxin's AI cloud infrastructure as an independent business segment, with an implied value exceeding $50 billion. Haitong International selected domestic general GPU manufacturer Moore Threads as a key reference, believing that in terms of product maturity, application implementation, and scalability, Kunlunxin holds significant advantages, and its potential value could reach three times that of Moore Threads. The multi-billion dollar valuation guidance from several institutions is mainly based on business progress and growth expectations. According to IDC data, Kunlunxin ranked third in China's AI accelerator chip market in 2024 with shipments of 69,000 units, surpassing well-known manufacturers such as Cambricon and Moore Threads. Macquarie Securities predicts that its revenue in 2026 is expected to double to about $1.4 billion, placing it among the top tier domestically. Public information shows that Kunlunxin has become one of the few domestic AI chip manufacturers to achieve large-scale deployment of tens of thousands of cards across multiple scenarios. The market's repricing of Kunlunxin is leading to a re-examination of Baidu's overall valuation logic. Both Goldman Sachs and Macquarie previously pointed out that the spin-off and listing of Kunlunxin is a key step for Baidu to "unlock value." As the contributions from chips, cloud infrastructure, and related AI businesses continue to grow, Kunlunxin is expected to become an important starting point for the market to re-understand Baidu's long-term growth potential.