Kingsoft Cloud jumps as AI-demand optimism builds after FY2025 results and target raise
Kingsoft Cloud ADSs rose about 5% as investors continued to buy into an AI-driven growth narrative after its FY2025 results highlighted strong public-cloud expansion and sharply reduced losses. Recent bullish analyst action, including Jefferies lifting its price target to $19, helped support sentiment.
1. What’s moving the stock today
Kingsoft Cloud Holdings (KC) was higher in Thursday trading, extending a recent rebound that has been fueled by improving fundamentals and renewed optimism around AI-related cloud demand. The latest leg up appears tied to continued digestion of the company’s fourth-quarter and full-year 2025 results, where revenue growth accelerated and losses narrowed, reinforcing the view that AI workloads can be a key growth driver for 2026.
2. The key catalyst: improving results and AI narrative
In its FY2025 update released March 25, 2026, Kingsoft Cloud reported 2025 revenue of RMB 9,558.6 million, up 22.8% year over year, with public cloud revenue up 32.5%, alongside a sharply reduced net loss. Those figures have kept investor focus on scale benefits and the potential for better profitability as AI-driven demand lifts utilization and mix.
3. Analyst support adds momentum
Bullish sell-side commentary has also been supporting the move. Jefferies recently maintained a Buy rating and raised its price target on Kingsoft Cloud to $19 from $17, citing AI-related demand and the company’s positioning to serve key accounts as a neutral platform across model ecosystems in 2026.
4. What to watch next
The next major scheduled catalyst is Kingsoft Cloud’s upcoming earnings release, listed for May 27, 2026, which could validate (or challenge) expectations for sustained AI-related momentum. Investors will also be watching for signs that elevated short interest is contributing to volatility and potential short-covering bursts when momentum turns positive.