Popular Stock Analysis: Kingsoft Cloud (03896.HK)

Kingsoft Cloud (03896.HK) has become a popular Hong Kong stock mainly based on the following two dimensions:

• Expected Synergies with Xiaomi’s AI Ecosystem
  : As the core cloud service provider for Xiaomi Group, investors generally believe that Kingsoft Cloud will directly benefit from the explosive growth of Xiaomi’s AI ecosystem, including data transmission and cloud training for Xiaomi’s intelligent driving, computing power support for large models, and cloud demand for WPS AI and IoT devices [3].
• Fundamental and Valuation Support
  : In Q3 2025, Kingsoft Cloud’s AI cloud business revenue increased by 116% year-on-year, accounting for 32% of total revenue, and achieved adjusted net profit turning from loss to profit [4]; the current stock price has corrected about 50% from the 52-week high, which is considered by some investors to have valuation appeal [3].

As of January 1, 2026, Kingsoft Cloud’s stock price is approximately HK$5.60, with a market capitalization of about HK$25.3 billion [2]; the 52-week price range is HK$4.48-11.40 [2]. The recent price trend shows a volatile downward movement: 10-day decline of 8.987%, 5-day decline of 3.966%, 3-day decline of 3.633%; average daily trading volume is about 130 million shares, with a turnover of about HK$140 million [1][2].

• Social Platforms
  : The overall investor sentiment on platforms like Snowball is bullish, with most optimistic about the long-term synergies between the company and Xiaomi’s AI ecosystem [3];
• Technical Indicators
  : RSI(14) is 44.25, in the neutral zone [1];
• Institutional Views
  : Goldman Sachs slightly raised the target price to $13.8, believing that its Q3 profit exceeded expectations [4].

1. Double-edged Sword of Xiaomi Ecosystem Binding
   : The deep binding between Kingsoft Cloud and Xiaomi’s AI ecosystem is both a core growth driver and makes its performance highly dependent on the development progress of Xiaomi’s AI business. Close attention needs to be paid to the implementation of Xiaomi’s intelligent driving, large models, and other projects.
2. Growth Potential of AI Cloud Business
   : Although the current market share competition is fierce, as the foundation of artificial intelligence development, the 116% year-on-year growth rate indicates that Kingsoft Cloud has certain competitiveness in this segment and may become a long-term growth engine.
3. Divergence Between Valuation and Sentiment
   : The approximately 50% correction from the 52-week high and the optimistic sentiment of investors on social platforms form a divergence, reflecting the market’s divergence between the company’s long-term potential and short-term performance uncertainty.

• AI Industry Growth
  : AI computing power demand continues to grow, providing long-term market space for cloud service providers;
• Xiaomi Ecosystem Empowerment
  : The expansion of Xiaomi’s AI ecosystem may bring stable and growing customer demand to Kingsoft Cloud;
• Valuation Repair Space
  : The current stock price is in the middle of the 52-week range, and if fundamentals continue to improve, there may be opportunities for valuation repair.

• Performance Dependence Risk
  : The high binding with the Xiaomi ecosystem makes the company’s performance vulnerable to fluctuations in Xiaomi’s business;
• Industry Competition Risk
  : The cloud service market is dominated by giants like Alibaba and Tencent, and Kingsoft Cloud faces market share pressure;
• Profit Uncertainty
  : Although adjusted profit was achieved in Q3, the company is still in a loss state (TTM EPS: -0.22), and long-term profitability remains to be verified [2].

• Stock Code: 03896.HK, Sector: Technology Industry - Cloud Services;
• Core Drivers: Xiaomi AI Ecosystem Binding, High Growth of AI Cloud Business, Valuation Appeal;
• Recent Trend: Volatile Downward, 52-week Support at HK$4.48, Resistance at HK$11.40;
• Notes: Closely monitor the progress of Xiaomi’s AI business, changes in industry competition pattern, and improvement in the company’s profitability.