HK Stock Market Move | KINGSOFT CLOUD (03896) rises more than 44% to a new high during trading session, up more than 500% from its low in September. Reports suggest that Xiaomi is increasing its investment in the AI field.

KINGSOFT CLOUD (03896) rose more than 44% intraday, reaching a high of 6.7 Hong Kong dollars, hitting a historical high and up more than 500% from the low of 1.08 Hong Kong dollars in September. As of the time of writing, it is up 34.56%, trading at 6.23 Hong Kong dollars, with a trading volume of 1.942 billion Hong Kong dollars. On the news front, according to Interface News, Xiaomi is building its own GPU ten thousand card cluster and will heavily invest in AI large models. Xiaomi's large model team already has 6,500 GPU resources at its inception. In addition, Xiaomi Group partner and president Lu Weibing said today: "It is expected that Xiaomi's R&D expenses will be 24 billion yuan in 2024, reaching 30 billion yuan in 2025, and it is expected that R&D expenses will exceed 100 billion yuan in the next five years (2022-2026), with the main direction of R&D investment being AI, OS, and chips." It is worth noting that on November 19, KINGSOFT CLOUD announced that KINGSOFT had signed a new framework agreement with Xiaomi. GF SEC believes that the demand for computing power will increase following Xiaomi's deep integration of AI into the 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 can be expected, and profitability is expected to continue to improve. It is expected that the company's adjusted operating profit margin will turn positive in 2025.