US Stock Market Move | KINGSOFT CLOUD (KC.US) rose more than 6% as growth in AI public cloud revenue is expected to boost Q2 performance.

On Tuesday, KINGSOFT CLOUD (KC.US) rose nearly 7%, closing at $12.73. In news, GF SEC released a research report predicting that KINGSOFT CLOUD's revenue for Q2 2026 will reach 3.04 billion yuan, a year-on-year increase of 29% and a quarter-on-quarter increase of 12%, driven mainly by the growth of AI public cloud. The report forecasts a sequential increase of 1.8 percentage points in adjusted gross margin to 14.6%, as cluster delivery resumes, leading to a recovery in gross margin. It also predicts a slight positive adjusted operating profit for Q2 2026 and an adjusted EBITDA margin of 34%. The agency anticipates that while demand for AI computing power is strong, supply remains tight. KINGSOFT CLOUD has sufficient orders on hand and forecasts revenue growth of 35% and 34% year-on-year for 2026 and 2027, respectively, with AI public cloud business revenue expected to grow by 83% and 65% year-on-year. The company experiences strong demand with high visibility, and Xiaomi and Kingsoft are increasing investments in AI. Demand is rising for large models and internet customer inference, with robust training needs from clients in embodied intelligence and smart driving.