GDS Holdings (GDS) Gains Analyst Upgrade on AI Data Center Growth Prospects

We recently published a list of Top 10 Trending AI News On Wall Street’s Radar. In this article, we are going to take a look at where GDS Holdings Ltd. (NASDAQ:GDS) stands against other top trending AI news on Wall Street’s radar.

As the DeepSeek-driven sell-off in US AI stocks started to fade, China is claiming advances in another new-age technology that can impact quantum computing stocks globally. Origin Quantum Computing Technology’s prototype received over 20 million remote visits worldwide, marking a major milestone in the mainland’s quantum computing landscape.

Although China has been viewed as lagging behind the US in quantum computing, it could be leading the race when it comes to quantum communications (quantum networking). China has consistently tested secure quantum communications in fiberoptic and satellite networks.

Elsewhere, physicists working in Google’s laboratory developed a new digital-analog quantum simulator that can study and calculate complex physical processes with unprecedented precision. The milestone has the potential to solve different challenges in diverse fields, from solid-state physics to astrophysics.

“Our research demonstrates that it is possible to create superconducting analog-digital quantum processors on a chip and that these are suitable as quantum simulators,” said Andreas Läuchli, one of the theoretical scientists involved in the breakthrough.

We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

GDS Holdings (GDS) Gains Analyst Upgrade on AI Data Center Growth Prospects

A top level executive looking out of a skyscraper window, symbolizing the strategic decisions taken by the company.

GDS Holdings Ltd. (NASDAQ:GDS)

Number of Hedge Fund Holders: 32

GDS Holdings Ltd. (NASDAQ:GDS) develops and operates data centers, offering services like colocation, managed hosting, and cloud services to internet firms, telecom carriers, financial institutions, IT service providers, and large enterprises.

On February 14th, Citi analyst Louis Tsang increased GDS Holdings Ltd.’s (NASDAQ:GDS) price target to $51.2 from $25.1 and maintained a “Buy” stock rating. The brokerage’s due diligence signaled growing AI data center-related spending from China cloud service providers. The analyst believes that the AI capex up-cycle is in the early stage and GDS Holdings Ltd. (NASDAQ:GDS) will benefit from rising overseas data center deployment from “domestic giants.” Furthermore, Citi sees the “encouraging development” of DeepSeek driving AI inference demand from small to medium-sized enterprises.

Overall, GDS ranks 2nd on our list of top trending AI news on Wall Street’s radar. While we acknowledge the potential of GDS as an investment, 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 GDS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.