10 Firms Shine Amid Market Slump

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1. Kingsoft Cloud Holdings Ltd. (NASDAQ:KC)

Kingsoft’s shares surged by 20.45 percent on Monday to close at $15.14 apiece, with analysts pointing to news of Xiaomi’s poaching of a key developer of China-based DeepSeek as having fueled investor sentiment.

While not directly involved in DeepSeek, Kingsoft’s chairman Lei Jun, who also chairs technology giant Xiaomi, reportedly poached Luo Fuli, a top developer of ChatGPT’s new competitor DeepSeek, to join Xiaomi’s Artificial Intelligence development team.

The news boosted investor sentiment on hopes that any AI development in Xiaomi will create a ripple effect on Kingsoft’s business in cloud computing.

Luo Fuli is poised to take on a leadership role in Xiaomi’s large model team. Xiaomi plans to leverage his expertise in developing DeepSeek-V2 to improve the efficiency and user experience of its AI models, further advancing the company’s capabilities in artificial intelligence.

While we acknowledge the potential of KC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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