Shares of Kingsoft Cloud Holdings Ltd. (03888.HK) surged 5.01% in intraday trading on Thursday, outperforming the broader market, as the company reported better-than-expected third quarter results and raised its full-year guidance, fueling optimism around robust demand for cloud services.
The Hong Kong-listed cloud computing and artificial intelligence company posted a smaller-than-expected loss in Q3 and saw its revenue grow 21% year-over-year, driven by strength in its public cloud, enterprise cloud, and AI cloud segments. Management cited accelerating adoption of cloud services and AI among enterprises in China and internationally as key growth drivers.
Analysts were particularly bullish on Kingsoft's outlook, pointing to its leadership in cutting-edge technologies like cloud gaming and AI-powered enterprise applications. With the global transition to cloud computing and AI gathering pace, investors are betting that Kingsoft is well-positioned to capitalize on these secular trends and drive profitability over the next few years.
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