Movement Alert|KINGSOFT CLOUD Rises 5.98% in Regular Trading, Sector Strength and AI Cloud Transformation Continue to Drive Recovery

Market Focus07-31

On July 31, KINGSOFT CLOUD rose 5.98% in regular trading, trading at 5.38 HKD/share, with turnover of 229 million HKD, quickly recovering the previous session's decline triggered by concentrated mutual fund selling.

The rebound was driven by broad strength across the Internet Services and Infrastructure sector, combined with continued catalysts from the company's AI cloud transformation. Within the sector, GDS-SW surged 10.85% and SUNEVISION gained 5.05%. Despite southbound funds cumulatively net selling over 57 million shares in recent sessions, multiple investment banks remain bullish on KINGSOFT CLOUD's mid-to-long-term outlook as it transitions to a full-stack AI cloud service provider. Morgan Stanley previously initiated coverage with an Overweight rating and a $15 price target, noting AI business already contributes 34% of revenue with AI-related income projected to surge 109% year-over-year. Additionally, the company's AI computing product price increases of 15%-50%, effective since July 12, are expected to further improve profitability.

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