Trade Tensions Weigh Heavily on 10 Stocks

1. GDS Holdings Ltd. (NASDAQ:GDS)

GDS Holdings fell by 16.32 percent on Monday to close at $31.84 apiece as investors resorted to profit-taking to mitigate risks from the ongoing trade war between the US and China.

As with other Chinese firms, the trade conflict between the two economies helped dampen buying appetite among US investors.

GDS has already been hit hard, along with other Chinese firms, since Friday following President Donald Trump’s imposition of additional tariffs on Chinese goods.

Despite Monday’s drop, analysts were generally bullish on GDS’ shares, with City analyst Louis Tsang earlier raising its price target to $51.2 from $25.1 previously, while maintaining a “buy” rating. The rating was based on optimism toward growing AI data center-related spending from Chinese cloud service providers.

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 time frame. If you are looking for an AI stock that is more promising than GDS but 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.