HK Stock Market Move | KINGSOFT CLOUD (03896) Soars Over 12% in Morning Trading, Company Benefits from Xiaomi's Deep Integration of AI Into the Ecosystem's Computing Power Needs.

KINGSOFT CLOUD (03896) rose more than 12% in early trading, as of the time of writing, up 11.58% to HK$4.72, with a turnover of HK$3.61 billion. On the news front, on November 19, KINGSOFT CLOUD announced that KINGSOFT had signed a new framework agreement with Xiaomi, with the annual upper limits proposed for 2025-2027 being 23.10 billion yuan, 31.38 billion yuan, and 40.35 billion yuan, respectively. GF SEC stated that it is optimistic about the future demand for computing power as Xiaomi integrates AI deeply into the ecosystem. UBS released a research report stating that KINGSOFT CLOUD benefits from the development of AI and support from the Kingsoft ecosystem. KINGSOFT CLOUD's performance in the third quarter was strong, exceeding market expectations, and is expected to boost investor expectations for its continuous revenue and profit recovery. The bank believes that KINGSOFT CLOUD's current stock price is still below the valuation of independent cloud companies in China, and that the market undervalues the potential development opportunities for Kingsoft and its AI business.