Lyon: Goldman Sachs raises target price for Kingsoft Cloud to $20.4, benefiting from strong demand for artificial intelligence.

Lyon released a research report stating that Kingsoft Cloud's performance in the fourth quarter of last year exceeded expectations, benefiting from strong artificial intelligence demand driving total revenue to grow by 24% year-on-year. Public cloud service revenue grew by 35% annually during the period. The bank predicts that Kingsoft Cloud's revenue will grow by 30% annually by 2026, faster than the 23% growth in 2025, mainly driven by continued AI demand from customers such as Xiaomi and non-ecosystem clients. The bank has raised its revenue forecasts for the group in the next two years by 8% and 9% respectively, and extended the valuation basis to the 2027 fiscal year. Kingsoft Cloud's target price for its American stocks has been raised from $17.7 to $20.4, maintaining an "outperform" rating.