Artificial intelligence stocks are accumulating strength in anticipation of a breakthrough. KINGSOFT CLOUD (03896) has attracted Southbound funds against the trend.

Recently, KINGSOFT CLOUD's US stock has experienced a strong upward trend. The reason behind this is that the dust of the US election has settled, and US stocks are benefiting from the high-tech sector, with chips and artificial intelligence as the core of development. Meanwhile, KINGSOFT CLOUD released its third-quarter report yesterday, showing stable and positive performance. As a dual-listed cloud computing target, KINGSOFT CLOUD (03896) has been favored by southbound funds in the Hong Kong stock market recently. As of November 19, southbound funds have increased their holdings in KINGSOFT CLOUD. Currently, the Hong Kong stock market has 707 million shares, accounting for a total shareholding of 18.58%, with a net increase of 286 million shares in the past 20 days. Since being included in the Hong Kong Stock Connect, KINGSOFT CLOUD has seen a very high turnover rate, providing short-term gains for small and medium investors who prefer quick decisions. In the long term, this is related to the layout of the cloud computing industry and KINGSOFT CLOUD. With the development of artificial intelligence, industries like cloud computing will not be affected by global wars or trade wars in the future, and domestic demand alone will be in short supply, leading to high growth in the coming years. KINGSOFT CLOUD had not previously disclosed the expansion of its artificial intelligence business, but based on known information, the company has begun building artificial intelligence servers in the second half of this year, in cooperation with top companies such as Baichuan Intelligence. The company has stated that it has already partnered with dozens of top unicorn companies, but has not disclosed specific company names. Well-known models such as "Six Little Dragons" Zero One Million Things, Zhipu AI, MiniMax, and The Dark Side of the Moon may be included, but their names have not been disclosed due to commercial confidentiality agreements. Furthermore, KINGSOFT CLOUD was spun off from KINGSOFT itself, with a deep understanding of the software business. As an established cloud service enterprise, KINGSOFT CLOUD has a strong understanding of the cloud support, service capabilities, and demand conditions needed for the development of artificial intelligence. With rich existing customer resources, the company is likely to take off in the upcoming boom of the artificial intelligence industry and is expected to maintain growth in the second half of the year. After the first wave of securities stocks speculation in the next bull market subsides, the era of artificial intelligence stocks is expected to arrive, and KINGSOFT CLOUD is a potential target with undervalued potential right now.