Top 10 Stocks to Buy According to 12 West Capital Management

2. GDS Holdings Limited (NASDAQ:GDS)

Number of Hedge Fund Holders as of Q4: 32

12 West Capital Management’s Equity Stake: $133.27 Million 

GDS Holdings Limited (NASDAQ:GDS) specializes in providing data center and IT infrastructure services, including colocation, managed hosting, and cloud solutions. The company generates revenue primarily through the development and operation of high-performance data centers across China and Southeast Asia, serving a diverse range of clients.

The company reported a 17.7% year-over-year increase in net revenue, reaching $422.6 million and surpassing the consensus estimate of $415.42 million. This growth was largely driven by the ongoing expansion of its data centers and business operations. Adjusted gross profit rose 20.4% year over year to $214.1 million, with the margin improving to 50.7% from 49.5% in the previous year.

Chairman and CEO William Huang noted that in China, GDS Holdings Limited (NASDAQ:GDS) continued executing its backlog while being selective with new orders. He also emphasized that the company’s recent rise in equity strengthens GDS’s position to capitalize on international growth opportunities. CFO Dan Newman highlighted that the $1 billion equity raise will fund GDS’s international expansion and enhance shareholder value.

The Chinese data center operator is reportedly pursuing a loan amounting to approximately $3.4 billion for its data center operations in Malaysia. If secured, this would mark GDS Holdings Limited (NASDAQ:GDS)’s largest loan to date and rank among the most significant financing deals within the data center sector by any borrower in Asia.

GDS Holdings Limited (NASDAQ:GDS) demonstrates strong growth potential with its revenue increase, driven by expanding data center operations in China and Southeast Asia. Its equity rise supports ambitious international expansion, positioning the company for long-term profitability, making it second on the list of top stocks to buy according to 12 West Capital Management.