Kingsoft Cloud upgraded to BUY on strong AI-driven growth and major contracts, with shares valued for 100% upside.

Astrada Advisors upgraded Kingsoft Cloud from HOLD to BUY, highlighting a significant shift in the company's growth narrative driven by AI cloud services. Kingsoft Cloud's AI cloud billing now accounts for over half of its public cloud revenue, growing 90% year-over-year, supported by major contracts with Xiaomi and Alibaba. The stock trades at a forward EBITDA multiple of 5x, which is a notable discount compared to peers, with a valuation range of $17–$22 per share implying more than 100% upside potential. Risks include heavy reliance on Xiaomi, margin pressures from capital expenditures, and possible loss of pricing power if demand shifts towards raw infrastructure services.