10 AI Stocks on Analysts’ Radar As AI Spending Grows

8. GDS Holdings Ltd (NASDAQ:GDS)

Number of Hedge Fund Holders: 32

GDS Holdings Ltd (NASDAQ:GDS) is a company that builds and runs data centers in China and Southeast Asia. It offers various services, including colocation, managed hosting, and managed cloud services. It also provides the data center infrastructure necessary to power AI applications and meet the high computing demands of artificial intelligence workloads. On February 24, Edison Lee, an analyst at Jefferies, downgraded the stock to a Hold from a Buy and hiked the price target to $45 from $27.06.

The price target increase comes amid expectations that GDS Holdings Ltd (NASDAQ:GDS) will be one of the beneficiaries amid China’s expected artificial intelligence capital expenditure increase. The Capex increase will be fueled by heightened demand for internet data centers as China is on the brink of a significant AI infrastructure spending spree among cloud service providers.

While China is expected to spend more than $100 billion a year on AI infrastructure, GDS Holdings Ltd (NASDAQ:GDS) will be one of the beneficiaries, having generated $1.56 billion in revenue over the past 12 months and exhibiting robust revenue growth of 12%.