NEW YORK, Feb 12, 2026, 09:38 EST — Session ongoing as scheduled.
- Kingsoft Cloud’s shares surged roughly 10% during early trading in the U.S.
- Goldman Sachs bumped up its rating for the China-based cloud provider to “Buy” and lifted the price target to $15.60.
- Traders are closely monitoring any news related to Xiaomi and the upcoming quarterly earnings report.
Shares of Kingsoft Cloud Holdings Ltd surged roughly 10% to $14.43 in early Thursday trading, building on a strong rally this week fueled by renewed analyst enthusiasm over the company’s relationship with Xiaomi.
Goldman Sachs analyst Timothy Zhao raised the stock rating from “Neutral” to “Buy,” placing a $15.60 price target on it, according to a note reported by TheFly. 1
Goldman bases its outlook on Xiaomi ramping up AI spending, forecasting about 10 billion yuan ($1.4 billion) in AI investment by 2026, rising from over 7 billion yuan in 2025. The company aims to develop large language models—software that can generate and summarize text—across its device lineup. Goldman also expects Kingsoft Cloud to renew its related-party deal with Xiaomi before mid-year, which could boost Xiaomi’s revenue cap by 10%–15% for 2026–2027 compared to current terms. 2
The move comes as momentum in the stock gains traction: MarketScreener data reports Kingsoft Cloud shares climbed around 19% over the last five days and have surged nearly 40% since January. 3
In other U.S.-listed Chinese tech stocks, the market showed mixed moves. VNET Group jumped roughly 12%, but Alibaba and Baidu slipped about 1% to 2% in early trading.
The call stokes a trade that’s been bouncing between “AI infrastructure” hype and straightforward risk management. Kingsoft Cloud, a smaller name with higher beta, tends to react sharply to changes in market mood.
The key point is this: if Xiaomi’s AI efforts lead to more substantial, lasting workloads for Kingsoft Cloud, that’s a much clearer revenue driver than just betting on a general “cloud is back” narrative.
The downside is obvious: cloud pricing can get complicated, and rising chip and hardware costs risk squeezing margins if providers undercut each other. Any hiccup or letdown in renewing the Xiaomi-linked deal could easily dampen the bid.
Kingsoft Cloud is set to release its next earnings report on March 25, giving investors a key update, according to Investing.com’s earnings calendar. 4
Traders will be on the lookout for company filings or disclosures linked to Xiaomi transaction details in the coming days, watching closely to see if the initial surge in buying momentum sticks around after the morning rush.
