HK Stock Market Move | KINGSOFT CLOUD (03896) rose nearly 13% during the trading day, with the H20 chip resuming sales to China. The company's chip shortage issue is expected to be alleviated.

KINGSOFT CLOUD (03896) rose nearly 13% during trading hours, as of the time of this report, it is up 7.97% at HK$8.4, with a trading volume of HK$2.644 billion. On the news front, according to CCTV News, NVIDIA founder and CEO Jensen Huang revealed two developments on July 15th: the US has approved the sale of the H20 chip to China, and NVIDIA will launch the RTXpro GPU. In addition, there have been reports recently about a meeting between NVIDIA CEO Jensen Huang and chairman Lei Jun. A research report from UBS pointed out that previously, KINGSOFT CLOUD had faced chip supply shortages due to the H20 ban, leading to the need to share revenue with server rental partners, and lowering the second quarter gross profit margin guidance to 14%. The full-year adjusted operating profit margin is expected to record a low single-digit decline, but the potential delivery of NVIDIA B30 and H20 could alleviate its chip shortage problem and bring profit margin upside potential. They have a "outperform the market" rating and a target price of $17.