10 AI News and Ratings Making Waves on Wall Street

6. GDS Holdings Limited (NASDAQ:GDS)

Number of Hedge Fund Holders: 32

GDS Holdings Limited (NASDAQ:GDS) operates data centers in China, offering colocation, managed hosting, cloud services, and consulting to cloud providers, internet firms, financial institutions, and more.

On February 12, Morgan Stanley analyst Yang Liu reaffirmed an Overweight rating and a $39 price target on GDS Holdings Limited (NASDAQ:GDS), and highlighted it as a catalyst-driven idea ahead of Alibaba’s FY3Q25 earnings on February 20. The report is expected to provide insights into Alibaba’s future CapEX and cloud revenue outlook, which are important for GDS’s growth since Alibaba is its largest customer in China. Three potential scenarios were outlined: if Alibaba maintains FY26 capex at around RMB 70 billion (US$1 = RMB 0.14) or provides no CapEX update, GDS’s stock impact is expected to be neutral.

A more than 10% capex increase driven by AI investments, coupled with a bullish cloud revenue outlook, could lead to more new bookings and faster move-ins for GDS, potentially driving a 10% increase in share price. On the other hand, a CapEX reduction could slow GDS’s move-ins and result in a 10% stock price decline. Additionally, any AI investment increases, especially after Alibaba’s partnerships with Apple, Qwen model releases, and ByteDance’s investment plans, could further drive demand across the data center industry.