10 Best Performing IT Services Stocks to Buy According to Analysts

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1. VNET Group Inc. (NASDAQ:VNET)

YTD returns: 147%

Potential Upside: 24%

Number of Hedge Fund Holders: 26

VNET Group Inc. (NASDAQ:VNET) is a prominent pure-play data center provider in China, focusing on multi-carrier and multi-cloud internet data center (IDC) services. Its portfolio includes hyperscale and retail colocation, cloud services, and business virtual private network (VPN) services, catering to a diverse range of enterprise and hyperscale clients.

In 2025, VNET Group Inc. (NASDAQ:VNET) has experienced an impressive 147% stock rally. This surge in share price is primarily driven by the company’s rapid expansion in AI-centric data center solutions, addressing the growing demand from hyperscalers and enterprises. As the exclusive operator of Microsoft Azure and Microsoft 365 in China (through 21Vianet) and a key provider for Alibaba, the company is strategically positioned to benefit from the increasing investments in AI infrastructure. The company is transitioning towards high-value AI computing services while enhancing efficiency. With 490 MW capacity reserved for expansion, VNET Group Inc. (NASDAQ:VNET) is well-poised to leverage the rising demand for AI and cloud services in China.

On February 14, a Citi analyst raised his price target for the shares from $4 to $16.1, reaffirming his Buy rating. He also added the stock to Citi’s Focus List, citing the company’s prime position to benefit from China’s AI demand. The consensus 1-year median price target currently stands at $14.52, suggesting a 24% potential upside.

While we acknowledge the potential of VNET to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VNET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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