On October 27, Baidu Group-SW (09888.HK) saw a strong performance in the Hong Kong market. As of 14:10, its stock price stood at HK$124.70, up HK$6.90 or 5.86%. The stock even hit an intraday high of HK$124.80, with trading volume significantly increasing, indicating continued market optimism and funds flowing back into the tech sector.

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Breakthrough in Autonomous Driving, Apollo Go Expands to Switzerland

The core catalyst behind Baidu's stock price increase is the latest progress in its autonomous driving business. Baidu's "Apollo Go" announced a strategic partnership with PostBus, the postal bus service under Swiss Post. The partnership plans to start autonomous driving testing in eastern Switzerland by December 2025 and aims for fully driverless commercial operations by Q1 2027.

The project, named AmiGo, will serve remote areas such as St. Gallen and address the issue of insufficient public transportation coverage. It has already gained support from several Swiss state governments and federal transport agencies, marking the first systematic entry of Chinese autonomous driving technology into Europe's public transport system. The vehicles involved will be equipped with Baidu's sixth-generation autonomous cars, featuring removable steering wheel designs to pave the way for fully driverless operations.

AI Business Continues to Grow, Financial Performance Exceeds Expectations

In addition to autonomous driving, Baidu's AI commercialization progress has further strengthened the company's growth trajectory. According to Baidu's Q2 2025 financial report, AI-related business revenue exceeded RMB 10 billion, up 34% year-on-year, becoming the main engine for the company's performance growth. Among these, Apollo Go completed over 2.2 million trips in a single quarter, up 148% year-on-year, making it one of the largest driverless travel services globally.

Although Baidu's Q2 revenue was RMB 32.71 billion, a slight year-on-year decrease, the adjusted earnings per share (EPS) of RMB 13.58 exceeded market expectations, reflecting the company's strong profit resilience and cost control capabilities.

Positive Institutional Outlook, Strengthening AI Valuation Logic

In a research report, CCB International pointed out that Baidu's valuation logic is shifting from traditional search advertising to a "dual drive" of "search + AI." The application and commercialization of AI technology are gradually enhancing the company's long-term value.

Guohai Securities has initiated coverage on Baidu with a "Buy" rating, describing the company as "one of the few tech companies globally with a full-stack AI capability." With a significant technological moat, Baidu is expected to gain an edge in the next round of AI commercialization competition.

Continued Technical Advantages, Growth Potential Worth Anticipating

The market generally believes that Baidu is transitioning from an internet company to an AI tech company. Its entry into the European autonomous driving market is considered a strategic breakthrough, further strengthening its global tech roadmap. As the commercialization of autonomous driving advances and AI products are rolled out, the company’s valuation is expected to gradually decouple from the traditional advertising cycle and enter a new growth phase. The market will focus on Baidu's upcoming Q3 earnings report and the progress of AI business profitability. If the company's performance continues to strengthen the "AI-driven growth" logic, its stock price still has room for further upside.

How to Buy Baidu Group on uSMART

After logging in to the uSMART HK App, tap the search icon at the top right, enter the ticker 09888.HK, and open the stock details page to review trading data and price charts. Tap “Trade” at the bottom right, select the trade type, enter the order details, and submit to complete your transaction.

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