15 AI Stocks That Skyrocketed in Q4

Page 11 of 14

4. Kingsoft Cloud Holdings Limited (NASDAQ:KC)

Number of Hedge Fund Holders: 5

Stock Price Performance in Q4 2024: ~257%

Kingsoft Cloud Holdings Limited (NASDAQ:KC) is a China-based company that offers a range of cloud services, including IaaS, PaaS, and SaaS solutions. Its product portfolio covers cloud computing, network services, database management, big data, security, storage, and delivery. The company provides digital solutions and R&D services across various industries, such as video, e-commerce, intelligent mobility, AI, and mobile internet. It also supports enterprise cloud services in sectors like finance, public service, and healthcare.

Kingsoft Cloud (NASDAQ:KC) experienced a surge likely due to multiple reasons in the last quarter. One of the main reasons could be a 16% YoY increase in FQ3 2024 revenue, reaching nearly RMB 1.886 billion (RMB 1 = US$0.14), with significant growth driven by AI and ecosystem services. Public cloud revenue grew 15.6% to $167.5 million, while enterprise cloud revenue rose 16.7% to $101.2 million. AI contributed 31% to public cloud revenue, as noted by CEO Tao Zou.

As mentioned in its earnings call, the company also continues to drive growth with a strong focus on AI and its collaboration with Xiaomi. The company’s revenue growth had significant contributions from Xiaomi’s AI ecosystem, including advancements in autonomous driving and AI. It also renewed its agreements with Kingsoft Corporation (parent company) and Xiaomi for continued cloud services and financial offerings, spanning over three years and starting in 2025.

Kingsoft Cloud (NASDAQ:KC) was also upgraded by notable analysts. On November 22, Nomura upgraded Kingsoft Cloud to Buy with a target price of $6.70, as the firm mentioned that the growth was driven by AI revenue and strong cloud demand from Xiaomi, particularly for electric vehicles, autonomous driving, and language model training, which should boost sales and margins. Moreover, on December 6, The Fly reported that UBS upgraded Kingsoft Cloud to Buy with a price target of $12.50, up from $4.20, following strong Q3 results.

Page 11 of 14