These 10 Companies Led Tuesday’s Charge

1. GDS Holdings Ltd. (NASDAQ:GDS)

Shares of GDS Holdings surged 17.23 percent on Tuesday to close at $34.29 apiece as investors snapped up its shares following a news report that it was mulling over listing its international subsidiary DayOne on the US stock exchange.

According to a report by Bloomberg citing unnamed sources privy to the matter, GDS could potentially list DayOne in a bid to raise $500 million on the stock market.

The company was said to be targeting the initial public offering as early as this year, and that it is already in discussions with underwriters for the issuance.

GDS was able to raise $1.2 billion for DayOne in December last year from investors including SoftBank Vision Fund and Citadel Chief Executive Officer Ken Griffin.

GDS is a Chinese data center company with operations in China and Southeast Asia. Meanwhile, DayOne holds GDS’ data center and operations outside of mainland China.

DayOne’s portfolio currently includes approximately 480MW of data center capacity in service and under construction, as well as an additional 590MW held for future development across sites in Hong Kong, Singapore, Malaysia, Indonesia, and Japan.

While we acknowledge the potential of GDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as GDS 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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