JP Morgan: Raises KINGSOFT CLOUD (03896) target price to 10 Hong Kong dollars, high certainty in AI growth prospects.

JPMorgan released a research report stating it maintains a "buy" rating for KINGOFT CLOUD (03896, KC.US), with a target price for H-shares raised from 2.2 HKD to 10 HKD. After KINGSOFT CLOUD announced its third-quarter performance, the stock price surged, and it is believed that the group is successfully undergoing a strategic transformation towards artificial intelligence, embracing the financial benefits brought by XIAOMI-W (01810) and the entire Kingsoft group. Therefore, the bank believes that the certainty of revenue growth in artificial intelligence for KINGSOFT CLOUD is higher than many other AI stocks. JP Morgan believes that the demand for GPU computing power for model training by Xiaomi and KINGSOFT (03888) is still growing, and most of the AI computing expenses will be allocated to KINGSOFT CLOUD.