Kingsoft Cloud Shares Surge Over 6% as Major Domestic Cloud Providers Initiate Price Hike Cycle

Stock News04-10 10:36

Kingsoft Cloud (03896) rose more than 6%, gaining 6.46% to HK$8.41 by the time of writing, with a trading volume of HK$490 million. On the news front, on April 9, Tencent Cloud announced price adjustments for its AI computing power, container services, and EMR-related products. Due to the continued surge in global demand for AI computing power and significant increases in core hardware supply chain costs, Tencent Cloud will adjust the listed prices for these products effective May 9, 2026, to ensure service quality and the sustained supply of computing resources. Notably, Tencent Cloud had already implemented a round of price increases on March 11, followed by simultaneous announcements from Alibaba Cloud and Baidu Intelligent Cloud on March 18 to raise prices for their AI computing power products, with increases of up to 34% and 30%, respectively. Changjiang Securities pointed out that, on one hand, the sustained popularity of open-source AI models and the explosion in token demand since the beginning of the year have pushed the cloud computing industry into an inflationary period, with cloud providers' pricing power beginning to recover. On the other hand, Xiaomi's large-scale model is advancing toward trillions of parameters, accelerating the AI ecosystem, with highly certain orders within the ecosystem. Additionally, the company's customers are expanding into multiple scenarios such as autonomous driving, robotics, high-end manufacturing, and fintech. The firm is optimistic about the company's initiation of a price hike cycle amid high industry prosperity, while both its AI business and industry cloud business maintain strong growth, potentially contributing to future expansion opportunities.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment