Kingsoft Cloud (03896.HK) Hot Stock Analysis: Q3 Earnings Beat Expectations and AI Business Growth

Kingsoft Cloud (03896.HK) became a hot Hong Kong stock mainly due to its 2025 Q3 earnings report that exceeded market expectations. According to ET Net News [1], the company’s Q3 revenue was RMB 2.478 billion, up 31.4% YoY; adjusted net profit turned from loss to profit for the first time, reaching RMB 28.733 million (compared to a loss of RMB 237 million in the same period last year). AI business billing revenue reached RMB 782 million, surging about 120% YoY, driving adjusted EBITDA margin up from 9.8% to 33.4%. Everbright Securities maintained a ‘Buy’ rating on Kingsoft Cloud, emphasizing AI-driven rapid expansion of public cloud [2].

From the perspective of price and trading volume, the stock price fluctuated significantly over the past 7 trading days (2025-11-24 to 2025-12-02): it rose 3.42% on 2025-11-24 with a volume of 83.65M; the next day it hit a phase high of $6.62 with a volume of 80.11M, then gradually corrected to $6.01 on 2025-12-02 [0]. The significant increase in trading volume indicates high market attention to the company’s performance. Meanwhile, the company made it to the East Money App Hong Kong Stock Popularity List, attracting high attention from retail investors. At the industry level, NVIDIA’s latest results reflect the sustained momentum of AI development, and strong demand for AI cloud platforms supports Kingsoft Cloud’s popularity [1].

1. AI Business Becomes Core Growth Engine
   : AI billing revenue increased by 120% YoY and drove a significant rise in profit margin, indicating that Kingsoft Cloud’s AI strategy has achieved remarkable results and has competitiveness in the AI cloud service market.
2. Earnings Delivery and Market Expectation Gap
   : Q3 net profit turning from loss to profit far exceeded market expectations, which was the main driver of short-term stock price fluctuations, but the subsequent correction shows that some investors took profits.
3. Industry Synergy
   : The overall development of the AI industry (e.g., NVIDIA’s performance) forms positive synergy with Kingsoft Cloud’s business, enhancing market confidence in its growth potential.

1. Concerns About AI Bubble
   : Market concerns about valuation bubbles in the AI industry still exist; if industry valuations correct, it may affect Kingsoft Cloud’s stock price [1].
2. Intensified Competition
   : Leading cloud vendors like Alibaba and Tencent dominate the domestic market, and competitive pressure persists [1].
3. Price Volatility
   : Recently, the stock price has shifted from rapid rise to correction, showing market divergence and profit-taking pressure; if it breaks below the previous support level of $6.06, it may decline further [0].

• Sustained growth in demand for AI cloud services; the rapid development of Kingsoft Cloud’s AI business provides potential for its long-term growth.
• Institutions maintain ‘Buy’ ratings; if subsequent earnings continue to deliver, it may attract more long-term investors.

Kingsoft Cloud became a hot Hong Kong stock due to its Q3 earnings report exceeding expectations and explosive growth of AI business; its stock price fluctuated short-term then corrected. The company’s AI strategy has achieved remarkable results, driving profitability improvement; at the industry level, strong AI demand supports its growth potential. However, attention should be paid to risks such as AI bubble, market competition, and price volatility; future stock price trends will depend on sustained performance and industry development trends.

Support Level: $6.06 (2025-11-24 low)
Resistance Level: $6.62 (2025-11-25 high)