Why Kingsoft Cloud Holdings Stock Jumped Today

Yahoo Finance ·

Shares of Kingsoft Cloud Holdings ( KC +11.44% ) rallied on Wednesday, following bullish analyst commentary. Morgan Stanley analyst Yang Liu views Kingsoft as an excellent way for investors to profit from the long-term growth of China's nascent artificial intelligence ( AI ) industry. Liu believes the cloud services provider will be a prime beneficiary of the surging demand for AI infrastructure. In turn, he estimates that Kingsoft will increase its revenue by 35% annually through 2028. Liu predicts the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) could rise by an even more impressive 79% per year during that time.

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