Kingsoft Cloud Holdings (KC): Underperforming Tech Stocks to Buy According to Analysts
Key takeaways
- On May 27, Kingsoft Cloud reported a strong Q1 2026, with revenue rising 37.2% year-over-year to RMB 2.703 billion.
- To support expanding AI demand, Kingsoft Cloud invested RMB 3 billion in infrastructure during the quarter.
- With RMB 4.9 billion in cash reserves, the company is well-positioned to scale its AI and enterprise cloud operations throughout the year.
Kingsoft Cloud Holdings (KC): Underperforming Tech Stocks to Buy According to Analysts Maham Fatima Sun, June 28, 2026 at 12:33 AM GMT+7 2 min read KC Kingsoft Cloud Holdings Limited (NASDAQ:KC) is is one of the underperforming tech stocks to buy according to analysts. On May 27, Kingsoft Cloud reported a strong Q1 2026, with revenue rising 37.2% year-over-year to RMB 2.703 billion. Growth was primarily fueled by a 90% surge in AI business, which now represents over half of public cloud revenue. Despite a net loss of RMB 343.7 million, the company significantly narrowed its operating loss and achieved a healthy 27.6% adjusted EBITDA margin.
To support expanding AI demand, Kingsoft Cloud invested RMB 3 billion in infrastructure during the quarter. While these expenditures and higher server costs impacted short-term gross margins, the company remains focused on its "High Quality and Sustainable Development Strategy." Management expects to maintain this investment pace to capture further opportunities in the evolving cloud landscape.
With RMB 4.9 billion in cash reserves, the company is well-positioned to scale its AI and enterprise cloud operations throughout the year. The solid revenue performance (especially within its public cloud segment) underscores Kingsoft Cloud Holdings Limited's (NASDAQ:KC) successful penetration into high-growth tech sectors and its continued commitment to infrastructure-led expansion.