Kingsoft Cloud Holdings Ltd's stock surged 5.25% intraday, as investor sentiment was buoyed by the company's accelerating AI-fueled business growth and milestone achievement of profitability.
According to a recent research report, the company's AI revenue is growing rapidly, reaching 782 million yuan in Q3 2025 and surging approximately 120% year-on-year. This acceleration contributed to overall revenue growth of 31.4% for the quarter. Notably, the company achieved its first quarter of adjusted profitability in Q3 2025, marking a significant validation of its business model and economies of scale.
Further supporting the positive outlook, Kingsoft Cloud recently completed a new share placement, raising approximately HKD 2.76 billion, with 80% of the funds allocated to expand its AI business infrastructure and capabilities. The company's strategic upgrades to its AI platform and deepening ecosystem cooperation are seen as key drivers for future growth, leading analysts to maintain an "Add" rating with a positive target price.
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