Goldman Sachs Maintains Bullish Stance on Kingsoft Cloud Amid Strong AI Growth

Goldman Sachs analysts have maintained their optimistic view of Kingsoft Cloud's (NASDAQ:KC) future prospects. The firm reiterated its 'Buy' rating and $18 price target for the company, which currently trades at $10.24 per share.

The stock has significant upside potential to the analyst's target, according to Goldman Sachs. The company's AI cloud segment is a key driver of revenue growth, with an 82% year-over-year increase in the second quarter of 2026 and accounting for 43% of total revenue.

Management aims to maintain stable gross profit margin, EBITDA margin, and positive GAAP operating profit margin through the second half of 2026. The company's AI infrastructure-as-a-service payback period currently stands at 3.5 years by revenue or shorter by cash flow due to prepayment and computing power rental.

Kingsoft Cloud Holdings Limited reported a 31% year-over-year increase in revenue for the second quarter of 2026, reaching RMB3.07 billion. This exceeded analyst expectations and reflected strong public cloud revenue and significant contributions from AI, which now accounts for 56% of revenue.