Earnings and board changes put Kingsoft Cloud Holdings (KC) in focus
Kingsoft Cloud Holdings (NasdaqGS:KC) is back on investor radars after releasing its fourth quarter and full year 2025 results, along with a leadership reshuffle that includes the departure of long-time chairman Lei Jun.
See our latest analysis for Kingsoft Cloud Holdings.
The earnings release and leadership changes came after a period where momentum had already been building, with a 24.15% 90 day share price return and a 76.46% three year total shareholder return, although the five year total shareholder return remains negative at 68.61%.
If this shift in sentiment around Kingsoft Cloud has you thinking more broadly about AI infrastructure, it could be a good moment to widen your search with 36 AI infrastructure stocks
With revenue at CN¥9,558.62 million, a full year net loss of CN¥936.25 million and a recent share price run, the key question is whether Kingsoft Cloud is still undervalued or if the market is already pricing in future growth.
Most Popular Narrative: 25.2% Undervalued
Kingsoft Cloud's most followed narrative sets a fair value of $18.14 per share, compared with the last close of $13.57, and rests on a discounted cash flow view using a 10.93% discount rate.
Ongoing advances in AI and generative AI adoption across multiple sectors are rapidly increasing demand for intelligent computing and scalable cloud services, driving strong revenue growth, evidenced by AI related gross billings up 120%+ YoY and forming 45% of public cloud revenue, indicating the addressable market and future top line expansion remain underappreciated.
Readers may be considering what kind of revenue runway and margin lift would underpin that AI story, and what future earnings multiple would connect those assumptions.
Result: Fair Value of $18.14 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the AI optimism has clear pressure points, including high infrastructure costs that are affecting margins and heavy reliance on Xiaomi and Kingsoft ecosystem revenue.
Find out about the key risks to this Kingsoft Cloud Holdings narrative.
Another angle on valuation
The AI driven fair value of $18.14 frames Kingsoft Cloud as 25.2% undervalued, but the price tag looks less generous when looking at simple sales based pricing. The current P/S of 2.9x is higher than the US IT industry at 1.7x and above the fair ratio of 2.4x, while still below the 4.1x peer average. That mix of richer than industry but cheaper than peers puts more weight on your view of its growth story.
Before leaning on any single metric, it helps to see how the current pricing stacks up against the detailed breakdown in our valuation work. This includes how the ratio could move closer to the fair ratio over time, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With mixed signals on valuation and sentiment, this is a moment to move quickly and test the story against the underlying data for yourself. To see the balance of risks and rewards, start with the 2 key rewards and 3 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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