Kingsoft Cloud (KC, Financial) saw a pre-market increase of approximately 4.5%, reaching $19.82. This rise follows a report from CLSA, highlighting that breakthroughs in DeepSeek will accelerate AI application creation in China, boosting cloud computing demand. Kingsoft Cloud's strategic partnerships with Xiaomi and Kingsoft Software position it well to benefit from the AI boom. CLSA raised its price target for Kingsoft Cloud from $5.5 to $20.5, maintaining an "outperform" rating.
Goldman Sachs attributed the stock's rise to stronger-than-expected investor reactions to several factors. These include Kingsoft Cloud's framework agreements with Xiaomi and Kingsoft Software for 2025-2027, Xiaomi's increased AI investment, and the company's launch of AI models that reduce AI training and inference costs. Goldman Sachs set a target price of $13.7 with a "neutral" rating.
Additionally, CICC reported that Kingsoft Cloud announced full support for DeepSeek-R1/V3 in public and government cloud scenarios on February 8. Given higher-than-expected downstream customer demand, CICC raised its fiscal 2025 revenue forecast by 7.2% and adjusted EBITDA forecast by 6.5%. They increased the U.S. stock price target to $20, maintaining an "outperform" industry rating.
