Kingsoft Cloud (KC, Financial) saw a significant surge in its stock price, with shares rising 20% to a new all-time high in Hong Kong, and a pre-market increase of over 17% in the U.S. market. This boost is attributed to a report by Lyon, which highlighted a breakthrough by China's AI platform, DeepSeek. The advancement is expected to accelerate the creation of AI applications in China, subsequently driving demand for cloud computing services.
Cloud service providers are positioned as some of the top AI enterprises in China. Kingsoft Cloud, with its strategic partnerships with Xiaomi and Kingsoft Software, is well-placed to capitalize on the AI boom. Lyon has significantly raised the target price for Kingsoft Cloud's U.S. shares from $5.5 to $20.5, maintaining an "outperform" rating.