UBS Lifts Kingsoft Cloud Holdings Limited (KC) to $14 Amid AI Growth

On Thursday, UBS analysts raised the price target for Kingsoft Cloud Holdings Limited (NASDAQ:KC) while maintaining a “Buy” rating. This confidence is attributed to the company’s position as a pure-play cloud vendor with huge AI potential, anticipated to increase to over 40% by 2027, in contrast to 17% of total revenue in 2024.

Is Kingsoft Cloud Holdings Limited (KC) the Best Multibagger Stock to Buy According to Billionaires?

An executive standing in front of their headquarters building, proudly symbolizing the company’s achievements.

A fascinating development is the anticipated rebound in the company’s public cloud segment, which is projected to achieve a 20% revenue compound annual growth rate (CAGR) by 2027. From the climbing demand for AI-powered cloud solutions, greater contributions from Xiaomi’s ecosystem, and sustained growth in external clients, the reasons that explain this surge are many.

Analysts also anticipate that Kingsoft Cloud Holdings Limited’s (NASDAQ:KC) non-GAAP operating margin will improve, with narrow losses expected until achieving profitability by 2027. This strengthened standing is driven by higher revenue dependence on AI and enhanced cost efficiency from scaling operations. Indeed, it’s AI that is backing the analysts’ bullish stance.

Kingsoft Cloud Holdings Limited (NASDAQ:KC) is a Chinese cloud service provider that offers cloud solutions, research and development services, enterprise digital solutions, and related services. Founded in 2012, the company aims to become clients’ trusted partners and capitalize on digitalization.

While we acknowledge the potential of KC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure. None.