Kingsoft Cloud (03896.HK) Popularity Analysis: AI-Driven Growth and Profit Breakthrough

Kingsoft Cloud (03896.HK) is a cloud service provider under Kingsoft Corporation, dual-listed on NASDAQ and the Hong Kong Stock Exchange [0]. In Q3 2025, its revenue reached RMB 2.48 billion, a year-on-year increase of 31%, and it achieved positive adjusted net profit for the first time [0]. Its smart computing cloud business performed outstandingly, growing nearly 120% year-on-year and accounting for 45% of public cloud revenue [0], becoming the core growth engine. In-depth strategic cooperation with Xiaomi further strengthens its AI layout [1], and the size of the Wuhan team surged 1.8 times to support the AI innovation strategy [0].

Stock performance: Since 2025, the stock price has risen more than 60% [0], with the current price at approximately HK$6.05 [2], a 52-week range of HK$3.02-11.40 [3], and an average daily trading volume of about 89.06 million shares [0], indicating high market attention.

1. AI-Driven Dual Growth
   : AI not only drove the revenue growth of the smart computing cloud business (+120%) but also became the main catalyst for the stock price increase (up over 60% year-to-date) [0].
2. Significance of Profit Milestone
   : The first-time positive adjusted net profit marks the company’s shift from scale expansion to profitable growth, enhancing investor confidence [0].
3. Ecosystem Synergy Effect
   : Strategic cooperation with Xiaomi helps integrate resources of both parties, forming competitive advantages in AI application scenarios and user reach [1].

• The cloud computing industry is highly competitive, requiring continuous investment to maintain technological leadership [0];
• Early-stage investment in AI business may pressure short-term cash flow [0].

• Global AI demand growth brings long-term expansion space for the smart computing cloud business [0];
• Synergy effects from Xiaomi’s ecosystem are expected to open new revenue sources [1];
• Analysts’ average target price is HK$10.37, with an upside potential of about 71% from the current price [0].

Kingsoft Cloud (03896.HK) has become a popular target in the Hong Kong stock market due to AI-driven business growth, the milestone of first-time profit, and strategic cooperation with Xiaomi. The high-speed growth of its smart computing cloud business and positive analyst ratings show strong development potential, but investors need to pay attention to risks from industry competition and investment costs.