Chip Momentum at Baidu May Help Drive Google-Style AI Turnaround

China’s internet search leader Baidu Inc. is seeing a fresh wave of bullish calls from analysts thanks to the possible listing of its chip unit Kunlunxin.

The reversal of fortune mirrors that of Alphabet Inc., another online titan that had been lagging in the artificial intelligence race before suddenly making headlines with its semiconductor business. A higher profile in chips may also position Baidu to play a bigger role in the ongoing battle for AI supremacy between China and the US.