$Baidu(BIDU.US)Baidu has been performing strongly in the past two months, rising sharply by 36% from a low of HKD 105 to HKD 143, hitting a two-year high.

After seeing Baidu's announcement yesterday about Kunlun Chip secretly filing for a Hong Kong IPO, I realized that the biggest stock market theme in the past two years has been the GPU chip industry. Cambricon (570 billion), Moore Threads (280 billion), and Muxi (230 billion) all come from this industry.

Baidu's layout in the GPU sector has been overlooked by the market. Few people know that Kunlun Chip's layout started as early as 2011. Baidu has quietly invested for over a decade and has actually become a leader in the industry without much fanfare.

Kunlun Chip not only started early but is also more mature in commercialization and product iteration. It has been widely used not only in Baidu's own business systems but also by third-party cloud service providers, telecom operators, internet companies, and financial institutions. It's said that Tencent and ByteDance are also using it.

From the perspective of layout and application scope, Kunlun Chip might be the hidden champion of this industry. Currently, Baidu's market cap of nearly HKD 400 billion mainly reflects the valuation of its traditional businesses, with little recognition of its chip sector. The recent stock surge is likely related to this. Overall, compared to other GPU companies, Baidu's valuation is still relatively low.

Specific financial data for Kunlun Chip has not been disclosed yet. We look forward to the prospectus data and will keep a close eye on it.$BIDU-SW(09888.HK)$NVIDIA(NVDA.US)