Kingsoft Cloud Holdings Ltd (KC) stock surged 10.44% in the early intraday trading session on Thursday, driven by rising expectations that the cloud computing company could see increased business from AI integration.
The stock rally followed reports that Xiaomi, the consumer electronics giant founded by KC's chairman Lei Jun, had poached top talent from AI startup DeepSeek. This move is seen as a strategic step by Xiaomi to strengthen its artificial intelligence capabilities, potentially boosting demand for KC's cloud solutions if they are tapped to power Xiaomi's AI efforts.
The convergence of cloud computing and AI, two rapidly evolving fields, is expected to transform various sectors in the coming years. Kingsoft Cloud, which provides cloud infrastructure services, has been positioning itself to capitalize on the growing AI industry, making it well-positioned to benefit from the increasing demand for cloud-based AI solutions.
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