HK Stock Market Move | KINGSOFT CLOUD (03896) surged more than 12% in early trading, reports claim that Xiaomi is building a GPU ten-thousand card cluster, the company is benefiting from the increased demand from Xiaomi and Kingsoft ecosystem.

KINGSOFT CLOUD (03896) rose more than 12% in the morning session, with a 12.31% increase as of the time of publication, reaching HK$5.2, with a trading volume of HK$62.2157 million. On the news front, on December 26, according to reports from Jiemian News and others, Xiaomi Group is actively building its own GPU cluster to increase investment in AI large models. The report pointed out that Xiaomi's large model team had 6,500 GPU resources from the beginning. This move demonstrates Xiaomi's determination and commitment in the field of AI hardware. It is worth noting that on November 19, KINGSOFT CLOUD announced that KINGSOFT had signed a new framework agreement with Xiaomi. GF SEC stated that they are optimistic about the future increase in computational power demand as Xiaomi integrates AI deeply into its ecosystem. EB SECURITIES pointed out that as the only strategic cloud platform within the Xiaomi & Kingsoft ecosystem, KINGSOFT CLOUD's revenue elasticity from the ecosystem is promising, and profitability is expected to continue to improve. The company's adjusted operating profit margin is expected to turn positive by 2025.