NEW YORK, Feb 12, 2026, 09:38 EST — Regular session.
- Kingsoft Cloud shares jumped about 10% in early U.S. trading.
- Goldman Sachs upgraded the China-based cloud provider to “Buy” and raised its price target to $15.60.
- Traders are watching for updates tied to Xiaomi and the next quarterly results.
Kingsoft Cloud Holdings Ltd shares jumped about 10% to $14.43 in early trade on Thursday, extending a sharp run this week as investors chased fresh analyst optimism around the company’s ties to Xiaomi.
Goldman Sachs analyst Timothy Zhao upgraded the stock to “Buy” from “Neutral” and set a $15.60 price target, according to a note carried by TheFly. (TipRanks)
Goldman’s thesis leans on Xiaomi’s stepped-up spending on artificial intelligence, with the bank pointing to expectations for roughly 10 billion yuan ($1.4 billion) of AI investment in 2026, up from more than 7 billion yuan in 2025, and an ambition to build large language models — software that can generate and summarize text — across its devices ecosystem. The bank also said it expects Kingsoft Cloud to renew a related-party transaction agreement with Xiaomi before mid-year, potentially lifting the revenue cap from Xiaomi by 10%–15% for 2026–2027 versus current arrangements. (Investing)
The move lands in a market that has already been rewarding momentum in the name: MarketScreener data showed Kingsoft Cloud up about 19% over the past five days and up roughly 40% since the start of the year. (MarketScreener)
Elsewhere in U.S.-listed China tech, the tape was mixed. VNET Group rose about 12%, while Alibaba and Baidu were down around 1%–2% in early trading.
The call adds fuel to a trade that has been swinging between “AI infrastructure” optimism and plain old risk control. Kingsoft Cloud is a smaller, higher-beta name, and it can move hard on shifts in sentiment.
The story has a hinge. If Xiaomi’s AI push translates into bigger, stickier workloads for Kingsoft Cloud, that is a cleaner revenue argument than a broad “cloud is back” trade.
But the downside is just as clear: cloud pricing can turn messy, and higher costs for chips and hardware can squeeze margins if providers compete on price. Any delay or disappointment around the Xiaomi-linked agreement renewal would likely cool the bid.
Investors will get a scheduled checkpoint on March 25, when Kingsoft Cloud is due to report its next earnings, according to Investing.com’s earnings calendar. (Investing)
Between now and then, traders will be watching for any company filings or disclosures tied to Xiaomi-related transaction terms, and for signs the early move holds once the morning burst of buying fades.
