Kingsoft Cloud Soars 13.6% on Intraday Rally – What’s Fueling the Surge?

Summary
• Kingsoft Cloud (KC) rockets 13.8% intraday, hitting a 52-week high of $16.555
• Bank of America upgrades KC to Buy, citing AI-driven cloud growth and margin expansion
• Q2 results beat estimates by 88.66%, with revenue growth of 20.3% YoY

Kingsoft Cloud’s explosive 13.8% rally on September 9, 2025, has thrust the IT Services stock into the spotlight. The surge follows a strategic upgrade from Bank of America, which highlighted AI’s transformative role in KC’s public cloud business and a path to non-GAAP breakeven by 2027. With the stock trading near its 52-week high of $22.26, investors are weighing whether this is a sustainable breakout or a short-term spike.

BofA Upgrade Ignites Optimism in AI-Driven Cloud Growth
Bank of America’s upgrade of Kingsoft Cloud to Buy, with a $20.40 price target (up from $12.90), directly fueled today’s 13.8% surge. The firm cited three pillars: AI’s 39% contribution to public cloud revenue in Q2 2025 (vs. low-digit growth in 2023), gross margin expansion from high-teens to 10% in non-AI segments, and a revised 3x forward price-to-sales multiple. KC’s Q2 results, which exceeded revenue consensus by 3% and EPS estimates by 88.66%, further validated the thesis. Jefferies’ $17.00 price target hike and Xiaomi’s ecosystem-driven demand added to the momentum.

Options Playbook: KC20250919C15 and KC20251017C15 Lead the Charge
• MACD: 0.023 (bullish divergence from signal line 0.073)
• RSI: 48.56 (neutral, but rising from oversold levels)
• Bollinger Bands: Price at 16.07 (above upper band 15.01)
• 200D MA: 13.09 (KC at 16.07, 22.8% above)

Kingsoft Cloud’s technicals suggest a breakout above key resistance. The 200-day average (13.09) and Bollinger Bands (upper at 15.01) are decisively breached, while RSI’s 48.56 hints at potential for further gains. Two options stand out for aggressive positioning:

• KC20250919C15
- Strike: $15 | Expiration: 2025-09-19 | IV: 87.95% | Leverage: 10.57% | Delta: 0.688 | Theta: -0.074 | Gamma: 0.145 | Turnover: $99,654
- IV (high volatility) and Gamma (price sensitivity) suggest strong short-term momentum. A 5% upside to $16.87 would yield a 183% payoff (max(0, 16.87-15) = $1.87).

• KC20251017C15
- Strike: $15 | Expiration: 2025-10-17 | IV: 85.14% | Leverage: 7.03% | Delta: 0.647 | Theta: -0.0295 | Gamma: 0.0836 | Turnover: $38,208
- Moderate IV and Delta balance risk/reward. A 5% move to $16.87 would generate a 90.76% payoff (max(0, 16.87-15) = $1.87).

Aggressive bulls may consider KC20250919C15 for a short-term play on the 9/19 expiration, while KC20251017C15 offers a slightly longer runway for a 10/17 target.

Backtest Kingsoft Cloud Stock Performance
Below is an at-a-glance interactive report summarizing how Kingsoft Cloud (KC.O) performs after any day it rallies 14 % or more (close-to-close) since 2022. You can explore detailed win-rates, cumulative returns and significance tests inside the module.Key take-aways (quick highlights):• 34 qualifying surge events were detected from Jan-2022 to Sep-2025. • Median 1-day follow-through gain ≈ +1.9 %; win-rate 50 %. • Momentum tends to strengthen: by day 6 the average cumulative return reaches +9 % with a 65 % win-rate and becomes statistically positive. • Gains plateau afterwards, peaking around day 30 at +18 %, but significance fades as variance rises.All calculations use daily close prices; event dates were auto-extracted from KC’s OHLC history by flagging any session whose close jumped ≥ 14 % versus the previous close (chosen as a pragmatic proxy for “intraday surge”).

Act Now: KC’s Bullish Momentum Could Define Q3
Kingsoft Cloud’s 13.8% surge on BofA’s AI-driven growth thesis signals a potential inflection point. With the stock trading 22.8% above its 200-day average and Bollinger Bands breached, the technical case for continuation is strong. However, the 52-week high of $22.26 remains a critical psychological hurdle. Investors should monitor Amazon.com (AMZN) as a sector barometer (up 1.02% intraday) and KC’s ability to sustain volume above 5.59M. A breakdown below $14.53 (intraday low) would invalidate the bullish case. For now, the options market is pricing in volatility—position accordingly.