Kingsoft's stock surged 5.31% on Wednesday during the trading session, outperforming the broader market. This significant rally came after the company reported impressive fiscal third-quarter 2024 results, bolstered by robust growth in its AI business segment.

The company's revenue grew by 16% year-over-year to 1.89 billion Chinese yuan ($268.7 million), beating analyst estimates. This accelerated growth was fueled by the strong performance of Kingsoft's high-quality businesses, particularly in the AI sector, which offset declines in the lower-margin CDN business.

Kingsoft's AI business expanded significantly, contributing 362 million Chinese yuan in revenue and representing 31% of the company's public cloud revenue. Additionally, revenues from the Xiaomi and Kingsoft Ecosystem surged by 36% year-over-year, capitalizing on opportunities in sectors like electric vehicles, large language models, and WPS AI.