Kingsoft Cloud (03896.HK) AI Cloud Business Surge Drives Profit Inflection Point

As an independent cloud service provider in China, Kingsoft Cloud (03896.HK) delivered strong Q3 results, with its AI cloud business emerging as the core growth engine. Its intelligent computing cloud business increased by nearly 120% YoY, accounting for 45% of public cloud revenue [5], driving overall revenue growth. The company achieved an adjusted net profit of RMB 28.7 million, turning positive for the first time [1]. Goldman Sachs raised its target price to $13.8 [2], and the market responded positively with the stock opening 4.2% higher [3].

1. AI Cloud Becomes Growth Pillar
   : Intelligent computing cloud accounts for 45% of revenue, successfully seizing AI cloud computing opportunities;
2. Profit Inflection Point Verified
   : Adjusted net profit turned positive, reflecting effective cost control and emerging scale effects;
3. Institutional Confidence Boosted
   : Multiple analysts gave buy ratings, with an expected 71.48% increase in 12-month target price [0];
4. Deepened Ecosystem Collaboration
   : Cooperation with Xiaomi-Kingsoft ecosystem enhances customer stickiness and market share [0].

• Industry Dividends
  : Policy support drives demand growth in the AI cloud computing market [7];
• Valuation Repair
  : After the profit inflection point, valuation moves closer to profitable tech enterprises;
• Technical Barriers
  : Wuhan team expanded by 1.8x to support AI innovation [0].

• Intensified Competition
  : Leading players increase AI cloud investment, raising competitive pressure;
• Technology Iteration
  : Rapid changes in AI technology require continuous innovation;
• Macroeconomic Volatility
  : Enterprise IT spending affected by the economy leads to short-term revenue fluctuations.

Kingsoft Cloud transformed from scale expansion to profitability by focusing on AI cloud. AI growth and profit inflection point make it a popular target in Hong Kong stocks. Investors can pay attention to its sustained AI business capabilities and long-term value of ecosystem collaboration.