Why Kingsoft Cloud Holdings Limited (KC) Surged on Wednesday

We recently published an article titled Excellent Earnings Propelled Prices of These 10 Firms. 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.

Kingsoft Cloud Holdings Limited (NASDAQ:KC)

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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.