One of our top stock picks for 2026, China-based AI giant Baidu Inc (NASDAQ:BIDU) is already kicking the year off with a bang. The shares were last seen up 12.6% at $147.14, after the company announced plans to spin off its semiconductor unit, Kunlunxin, and list it in Hong Kong. Jefferies chimed in with a price-target hike to $181 from $159 and maintained its "buy" rating after the news.
Should these gains hold, BIDU will notch its largest single-day percentage gain since February 2023. Fresh off a 55% gain in 2025, today's bull gap has the equity hovering just below its Oct. 6, two-year peak of $149.51.
Options traders have been quick to pick up BIDU this morning, with 52,000 calls and 20,000 puts exchanged so far -- nine times the stock's average daily options volume already. The January 2026 135-strike call is the most popular, followed by the weekly 1/2 150-strike call that expires today, with new positions being opened at the latter.
BIDU is sporting reasonably priced options premium at the moment, too. This is per its Schaeffer's Volatility Index (SVI) of 40%, which ranks in the 25th percentile of its annual range.
