Why Kingsoft Cloud Holdings Limited (KC) Surged on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Kingsoft Cloud Holdings Limited (NASDAQ:KC) stands against the other stocks that soared on Wednesday.
The stock market finished Wednesday's trading on a lackluster note, with the three major indices finishing mixed, as investors digested news of the US economy's contraction in the first quarter of the year that triggered fears of a possible recession.
Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent.
Ten firms, on the other hand, managed to record strong gains, thanks to impressive earnings performance and optimistic outlooks for the rest of the year.
We have named 10 of the top-performing stocks on Wednesday and detailed the reasons behind their gains.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
An executive standing in front of their headquarters building, proudly symbolizing the company's achievements.
Kingsoft Cloud Holdings Limited (NASDAQ:KC) extended its rally for a third consecutive day on Wednesday, jumping 9.42 percent to finish at $13.59 apiece after earning a positive rating from an investment company.
On Wednesday, Citi reaffirmed its Buy rating and price target of $21.50 on Kingsoft Cloud Holdings Limited (NASDAQ:KC). The price target represented a 58 percent upside potential from the company's closing price on Wednesday.
According to Citi, the rating was based on the stock's strong momentum, buoyed by the release of Xiaomi's first Large Language Model, MiMo.
Investors had hoped that any developments in Xiaomi could spill over into the company, having been both chaired and led by businessman Lei Jun.
Citi also underscored that MiMo has already outperformed competitors such as OpenAI's O1 mini and Alibaba's Qwen-32 B-Preview in specific tasks like mathematical reasoning and code generation.
Overall KC ranks 5th on our list of the stocks that soared on Wednesday. While we acknowledge the potential of KC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: and .
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
20 minutes ago
- Business Insider
‘Nothing Lasts Forever,' Says Top Investor About Palantir Stock
Palantir (NASDAQ:PLTR) stock presents investors with quite a quandary. Confident Investing Starts Here: On the one hand, there is no denying that the company has delivered incredible growth over the past few years. Its revenues are skyrocketing, its margins are strong, and its list of customers continues to grow by leaps and bounds. Its share price has responded in kind, surging by over 466% over the past twelve months. And therein lies the rub, as PLTR is now trading at elevated multiples that are far and above the sector average. This leads to the question of whether all that company growth has led to enthusiasm that is a bit too optimistic. Top investor Riyado Sofian is decidedly on the fence, and is not sure which way the winds will blow. 'It's hard to decide whether to buy or sell — best to just hold it,' states the 5-star investor, who is in the top 3% of TipRanks' stock pros. Sofian outlines the bull case, describing a company that has introduced game-changing AI technology that sets the firm apart from its peers. Beyond the growing sales, profits, and customers, the investor also points out that revenues from Palantir's top 20 customers increased by 26% year-over-year, a strong indication of customer satisfaction. While the company continues to raise its guidance, it often succeeds in going well beyond these numbers, notes Sofian, and it has repeatedly 'destroyed its guidance' in previous quarters. In other words, more massive growth could be on the horizon for Palantir. 'All things considered, this is execution on an elite level — there's no denying it,' adds Sofian. And yet, judging by traditional metrics, the company is overvalued, the investor acknowledges, and its narrative as 'the most important AI company in the West' is what has powered its continuing ascent. For that reason, as long as the company's growth continues apace, PLTR should continue to rise as well. However, that is far from certain, and at a valuation of 100x its revenues, there is practically no room for error if the impressive rate starts to slow. To this point, Sofian reminds investors that nothing lasts forever. With neither a Buy nor a Sell looking particularly appealing, Sofian is splitting the difference and rating PLTR shares a Hold (i.e. Neutral). (To watch Sofian's track record, click here) That stance is echoed across Wall Street. Of the 18 analyst reviews on file, 11 say Hold, while just 3 recommend Buy and 4 suggest Sell, making PLTR a consensus Hold. The average 12-month price target sits at $101.06, implying a ~23% downside from current levels. (See PLTR stock forecast) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
26 minutes ago
- Yahoo
M&S resumes online sales six weeks after devastating cyber hack
Marks & Spencer customers were able to shop from the retailer's website today for the first time since it was crippled by a devastating cyber hack nearly seven weeks ago. The company said 'a selection of our best-selling fashion ranges are now available online for home delivery to England, Scotland and Wales - but not Northern Ireland - from today. 'More of our fashion, home and beauty products will be added every day and we will resume deliveries to Northern Ireland and Click and Collect in the coming weeks. Thank you sincerely for your support and for shopping with us.' It is the most encouraging sign yet that M&S is finally getting to grips with a cyber attack that will cost it £300 million in profits this year although about half of that is expected to be offset by insurance and other measures. Shoppers had been able to browse the website but have not been able to pay for any goods. It was forced to stop taking orders on its website when hackers gained access to its systems over the Easter weekend. M&S has said it expects disruption from the hack to continue until July. It emerged this week that M&S CEO Stuart Machin was sent a message on the 23 April from the hacker group DragonForce using an employee email account.
Business Insider
an hour ago
- Business Insider
QuantaSing upgraded to Buy from Neutral at Citi
Citi analyst Alice Cai upgraded QuantaSing (QSG) to Buy from Neutral with a price target of $9.52, up from $6.10, after meeting with management. The firm also opens a '90-day positive catalyst watch' on the shares. Wakuku production remains less than 50% of demand even after 5-6 times mold expansion, validating the 'explosive market reception,' the analyst tells investors in a research note. The firm says Wakuku Gen-2 restocking in mid-June should drive an immediate revenue uplift after prolonged shortages, while new intellectual property launches in June and July) validate QuantaSing's pipeline depth. Citi believes the company's pivot from a relatively low return on invested capital online education model to a high repeat-purchase, brand-driven IP model is a 'game-changer.' Confident Investing Starts Here:
