Kingsoft Cloud's stock surged 6.98% during intraday trading on Tuesday, reflecting strong investor confidence in the company's strategic direction.

The significant price movement follows a positive analyst report highlighting the company's accelerating growth driven by artificial intelligence. GTHT Securities maintained an "Add" rating on the stock, citing Kingsoft Cloud's entry into a new development phase fueled by AI business expansion. The firm noted that AI revenue grew approximately 120% year-on-year in the third quarter of 2025, contributing to the company's first quarter of adjusted profitability.

Further supporting the bullish sentiment, the company has made substantial investments in its AI infrastructure, including a recent share placement where 80% of the proceeds were allocated to AI initiatives. Kingsoft Cloud's upgraded Xingliu platform now supports nearly 40 different AI models, positioning the company to capitalize on the high-speed growth of the AI computing cloud market.