Kingsoft Cloud Holdings Ltd (KC) saw its stock price skyrocket by 15.03% in pre-market trading on Tuesday, as investor enthusiasm for AI and cloud computing stocks in China reached new heights. The surge follows a string of positive developments in the tech sector, including NVIDIA's recent announcement regarding chip exports to China.

The rally was sparked by NVIDIA founder and CEO Jensen Huang's July 15 statement that the US government has approved H20 chip exports to China. This news has ignited optimism across the Chinese tech landscape, particularly benefiting companies in the AI and cloud computing sectors. Kingsoft Cloud, as a prominent player in the Chinese cloud service market, appears to be riding this wave of positive sentiment.

Adding to the momentum, market analysts have pointed to the commencement of a new global AI "arms race." MinSheng Securities highlighted that major model releases, including Grok4 and Kimi K2, could significantly boost domestic computing power demand and application ecosystems. This outlook has further fueled investor interest in companies like Kingsoft Cloud, which are well-positioned to benefit from the expanding AI and cloud computing markets in China.