Kingsoft Cloud Holdings Ltd's stock soared 6.44% during intraday trading on Thursday, marking a significant upward movement for the company's shares.
The rally follows an analyst upgrade from Goldman Sachs, which raised its rating on Kingsoft Cloud to buy from neutral and increased its price target to $15.60 from $14.20. Such upgrades typically signal improved confidence in the company's future prospects and can attract investor buying interest.
Additionally, a Goldman Sachs research report highlighted that Xiaomi plans to invest approximately RMB 10 billion in artificial intelligence by 2026, with Kingsoft Cloud expected to be a primary beneficiary. The report also noted that Kingsoft Cloud is anticipated to update its connected transaction agreement with Xiaomi by mid-year, potentially raising the revenue cap from Xiaomi by 10% to 15% for 2026-2027, further bolstering investor optimism.