Kingsoft Cloud (KC) stock rocketed higher on Monday as retail traders took interest in the Chinese cloud service provider. This comes as the hype around DeepSeek boosts interest in Chinese tech companies. Kingsoft Cloud stands out among them with its cloud operations. Cloud companies are of keen interest to artificial intelligence (AI) investors as their data centers power the technology.
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While Kingsoft Cloud isn’t directly connected to DeepSeek, Lei Jun is the Chairman of its Board of Directors. Jun is also the founder, Chairman, and CEO of Chinese consumer electronics company Xiaomi (XIACF). Recent reports claim that Jun has recruited Luo Fuli to Xiaomi’s AI development team. That’s big news as Fuli is one of the main developers behind DeepSeek.
How This Affects KC Stock Today
Considering the close ties between Kingsoft Cloud and Xiaomi, it makes sense that KC stock would rally alongside news of a top DeepSeek developer being poached by Xiaomi. This has attracted investors to KC stock today with a 21.32% rally, building on its 46.81% increase year-to-date.
Kingsoft Cloud stock is also experiencing heavy trading today as roughly 8.88 million shares trade hands. That’s more than triple the company’s three-month daily average trading volume of 2.79 million units. This is the result of investors buying shares of KC stock.
Is KC Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Kingsoft Cloud is Moderate Buy based on two Buy and one Hold ratings over the last three months. With that comes an average price target of $5.47, a high of $6.70, and a low of $3.90. This represents a potential downside of 63.99% for KC stock.
