Kingsoft Cloud (KC) Stock Rises on Strong AI Growth Forecast

Dec 12, 2024

Kingsoft Cloud (KC, Financial) saw a pre-market increase of 3.46%, reaching $9.58. UBS released a report highlighting the company's robust third-quarter performance, driven by AI advancements and support from the Kingsoft ecosystem, surpassing market expectations. This development boosts investor confidence in the company's revenue and profit recovery.

With the growth in cloud usage, particularly in WPS Office, Xiaomi IoT, smartphones, and electric vehicles, revenue contributions from Kingsoft Software and Xiaomi are expected to rise from about 20% in 2024 to over 40% by 2027. This growth is projected to drive an annual compound growth rate of 13% from 2025 to 2027. UBS upgraded Kingsoft Cloud's rating from "neutral" to "buy" and raised its target price from $4.2 to $12.5, citing underestimated potential in Kingsoft and AI businesses.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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