Artificial intelligence stocks are poised for a breakout, and Kingsoft Cloud has attracted northbound capital to buy against the trend

Recently, Kingsoft Cloud's stock in the US has experienced a strong surge. The reason behind this is that the US election has concluded, benefiting the US stock market, particularly the high-tech sector, which will focus on chips and artificial intelligence for future development. Additionally, Kingsoft Cloud released its third-quarter report yesterday, showing stable and positive performance. As a dual-listed cloud computing entity, Kingsoft Cloud (03896) has recently attracted significant interest from southbound funds in the Hong Kong stock market. As of November 19, southbound funds have increased their holdings in Kingsoft Cloud again. Currently, the Hong Kong Stock Connect holds 707 million shares, accounting for 18.58% of total holdings, with a net increase of 286 million shares in the past 20 days. Moreover, since being included in the Hong Kong Stock Connect, Kingsoft Cloud has also seen a very high turnover rate, providing substantial short-term gains for small and medium investors who prefer quick trades. In the long run, this is related to the cloud computing industry and Kingsoft Cloud's strategic layout. With the development of artificial intelligence, industries like cloud computing will not be affected by global wars or trade wars, and domestic demand alone is already in short supply, which is expected to lead to high growth in the coming years. Kingsoft Cloud has not previously disclosed its artificial intelligence business expansion status, but based on known information, it can be inferred that since the second half of this year, the company has begun to establish artificial intelligence servers in collaboration with top company Baichuan Intelligent. The company has stated that it has reached cooperation agreements with dozens of leading unicorn large model companies, although it has not disclosed specific company names. Boldly speculating, well-known models such as "Six Little Dragons" including Lingyi Wanshu, Zhipu AI, MiniMax, and Dark Side of the Moon may be among them, and the lack of disclosure is likely due to commercial confidentiality agreements. Furthermore, Kingsoft Cloud itself was spun off from Kingsoft Software and is very familiar with software business. As an established cloud service provider, Kingsoft Cloud understands the support, service capabilities, and demand conditions required for the development of artificial intelligence. Its existing customer resources are also quite rich. Therefore, there is a high probability that it will take off during this wave of artificial intelligence industry explosion, and it is expected to maintain growth momentum in the second half of the year. It is believed that after the first wave of brokerage stock speculation in the next bull market ends, the era of artificial intelligence stocks will arrive, and Kingsoft Cloud is currently a potential target undervalued