Kingsoft Cloud's stock soared 5.11% during Monday's intraday trading session.
The rally was driven by rising expectations around the company's AI compute business following the activation of its API services agreement with Xiaomi Group. The cooperation framework agreement covers IDC services through mid-2028, hardware procurement through end of 2027, and API services through end of 2027. Market participants noted that Xiaomi's AI capital expenditure is in a rapid expansion phase, positioning Kingsoft Cloud as a core compute supplier to benefit from sustained demand growth.
Additionally, AI and computing power are key strategic priorities under national planning frameworks, aligning Kingsoft Cloud's business with long-term policy direction, which further bolstered market sentiment.
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