We recently compiled a list of the 10 Firms Shine Amid Market Slump. In this article, we are going to take a look at where Kingsoft Cloud Holdings Ltd. (NASDAQ:KC) stands against the other stocks.
Ten companies kicked off this week’s trading on a positive note, defying a broader market pessimism amid growing trade tensions among the US, Mexico, China, and Canada over the retaliation of tariffs on each other’s goods.
On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.
Ten companies under mixed sectors defied a broader market downturn, leading the charge among market advancers. In this article, we will examine which companies performed well and the factors driving their success.
The list of top advancers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.
An executive standing in front of their headquarters building, proudly symbolizing the company’s achievements.
Kingsoft’s shares surged by 20.45 percent on Monday to close at $15.14 apiece, with analysts pointing to news of Xiaomi’s poaching of a key developer of China-based DeepSeek as having fueled investor sentiment.
While not directly involved in DeepSeek, Kingsoft’s chairman Lei Jun, who also chairs technology giant Xiaomi, reportedly poached Luo Fuli, a top developer of ChatGPT’s new competitor DeepSeek, to join Xiaomi’s Artificial Intelligence development team.
The news boosted investor sentiment on hopes that any AI development in Xiaomi will create a ripple effect on Kingsoft’s business in cloud computing.
Luo Fuli is poised to take on a leadership role in Xiaomi’s large model team. Xiaomi plans to leverage his expertise in developing DeepSeek-V2 to improve the efficiency and user experience of its AI models, further advancing the company’s capabilities in artificial intelligence.
Overall KC ranks 1st on our list of the stocks that shone amid market slump. 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 timeframe. 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 the cheapest AI stock.
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