NEW YORK, January 2, 2026, 08:23 ET — Premarket
- Baidu jumps about 12% in early premarket after saying its AI chip unit filed for a Hong Kong listing
- U.S. stock index futures rise to start 2026; Nvidia and Broadcom gain in early trade
- Jobs and inflation data next week are set to steer rate-cut bets that can swing high-valuation tech
Shares of Baidu jumped about 12% in early premarket trading on Friday after the company said its artificial-intelligence chip unit had filed for a Hong Kong listing. Dow futures were up 171 points, or 0.35%, and S&P 500 futures rose 41.5 points, or 0.60%, while Nasdaq 100 futures gained 267 points, or 1.05%; Nvidia and Broadcom were up 1.8% and 1.6% in premarket trade. The new-year bid followed a late-December retreat in tech shares after AI-linked names helped push U.S. benchmarks to record highs in 2025.
The first full trading week of 2026 brings a stack of catalysts, led by the U.S. jobs report due January 9 and the consumer price index on January 13. Fourth-quarter earnings season also ramps up in January, with major banks such as JPMorgan set to report on January 13.
“The market is looking for direction,” said Matthew Maley, chief market strategist at Miller Tabak, noting the benchmark S&P 500 is near the same level it was in late October. Analysts expect S&P 500 earnings to rise 15.5% in 2026 after about 13% in 2025, and Fed funds futures — trader bets on the policy rate — imply little chance of a cut at the Fed’s late-January meeting but nearly a 50% chance in March. For AI stocks, where valuations already assume brisk growth, that mix of earnings and rates can quickly reset the trade. Reuters
Baidu said Kunlunxin confidentially filed a listing application with the Hong Kong stock exchange on January 1, paving the way for a spin-off and separate listing. The chip unit was valued at 21 billion yuan ($3 billion) in a fundraising round, and Baidu said details such as offering size and structure have not been finalized. Kunlunxin was formed in 2012 to develop AI chips for Baidu and has expanded external sales in recent years, while Baidu is expected to retain control after any spin-off.
The filing adds to a wave of China-linked AI and semiconductor offerings in Hong Kong. Shanghai Biren Technology closed up 76% in its debut on Friday after raising HK$5.58 billion, and Reuters reported the IPO pipeline includes AI startups and chipmakers, with Zhipu AI and Iluvatar CoreX due to debut on January 8. The rush reflects Beijing’s push to strengthen domestic chip alternatives as U.S. curbs tighten around advanced technology exports.
Supply-chain names are also in focus. Samsung Electronics said customers praised the competitiveness of its next-generation HBM4 — high-bandwidth memory used in AI servers to move data quickly between processors and memory — and it is in talks to supply the chips to Nvidia. SK Hynix held a 53% share of the HBM market in the third quarter of 2025, followed by Samsung at 35% and Micron at 11%, Counterpoint Research data cited by Reuters showed.
High-bandwidth memory has become a choke point for AI servers because it helps processors move data fast enough to train and run large models. More supply from an additional source could ease pressure on AI hardware rollouts, but it also keeps pricing and margins in focus across the chain.
Investors will also watch for any sign that AI infrastructure spending slows in 2026, particularly among the biggest cloud and internet companies. Capital spending, often shortened to capex, is the cash companies put into long-lived assets such as data centers, servers and custom chips.
The next test comes when companies start reporting results and guidance. Traders want to see whether higher depreciation and power costs are offset by new AI services that lift revenue per customer.
Policy remains another wildcard. Export rules for advanced chips and shifts in U.S.-China relations can swing sentiment quickly for both U.S. chipmakers and Chinese AI firms.
For Baidu, investors will look for clues on the size and timing of a Kunlunxin deal and whether the unit can win customers beyond Baidu. Any disclosure around pricing and competition from domestic chip suppliers could reshape expectations.
