Kingsoft Cloud rises over 10% on Morgan Stanley upgrade, Xiaomi GPU spending rumor

Kingsoft Cloud (3896.HK) tumbled during regular trading to HK$5.430, up more than 10%.

Morgan Stanley initiated coverage with a positive outlook. Separately, market rumors suggest Xiaomi is raising its GPU investment budget to over HK$10 billion, potentially benefiting Kingsoft Cloud as a core computing power supplier.

The company's AI computing power business is expected to enter a high-growth realization phase, with smart cloud computing revenue projected to reach HK$1 billion in the first quarter of 2026, representing a 90% year-over-year increase.