Major Bank Ratings | Goldman Sachs: Raises Kingsoft Cloud's target price to $15.6, expects to benefit from Xiaomi's continued investment in AI development

Glonghui, February 11｜Goldman Sachs released a research report, upgrading Kingsoft Cloud's rating from "Neutral" to "Buy". It is expected that Xiaomi will invest about 10 billion yuan in the AI sector by 2026, and Kingsoft Cloud will be the main beneficiary of Xiaomi's continued increased investment in AI development. The target price for Kingsoft Cloud's US shares has been raised from $14.2 to $15.6. The bank pointed out that Xiaomi is committed to integrating AI with the physical world through its "Human-Car-Home" ecosystem, and it is expected that Kingsoft Cloud will update its connected transaction agreement with Xiaomi by mid-year, raising the revenue cap from Xiaomi for 2026-2027 by 10% to 15% compared to the current cap. This means that the compound annual growth rate of revenue from Xiaomi for 2025-2028 could reach 37%. Goldman Sachs has raised its revenue forecast for Kingsoft Cloud for 2026-2028 by 4% to 13%, and its adjusted EBITDA forecast by up to 4%.