Why GDS Holdings Limited (GDS) Soared Last Week

We recently compiled a list of the Last Week’s Top 10 Stocks Post Double-Digit Gains. In this article, we are going to take a look at where GDS Holdings Limited (NASDAQ:GDS) stands against the other stocks.

The stock market may have registered losses on Friday, but remained firmer on a week-on-week basis, with the bellwether indices continuing to track further developments from the growing trade tensions globally.

On a weekly basis, the Dow Jones was up 0.5 percent, the S&P 500 grew 1.47 percent, while the tech-heavy Nasdaq increased 2.57 percent.

Meanwhile, ten companies mirrored broader market optimism, booking as much as double-digit gains in just the last five trading days.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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

GDS Holdings Limited (NASDAQ:GDS)

GDS Holdings Limited (NASDAQ:GDS) surged by 43.4 percent last week to close at $39.14 apiece on Friday versus the $27.28 apiece a week earlier as investors took heart from news that it was mulling over publicly listing its international subsidiary DayOne on the US stock exchange.

Citing unnamed sources privy to the matter, Bloomberg reported that GDS Holdings Limited (NASDAQ:GDS) could potentially list DayOne in a bid to raise $500 million on the stock market.

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

GDS Holdings Limited (NASDAQ: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 Holdings Limited (NASDAQ:GDS) is a Chinese data center company that operates in China and Southeast Asia. Meanwhile, DayOne holds GDS’s data center and operates outside of mainland China.

Overall GDS ranks 2nd on our list of last week’s top gainers. 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 timeframe. 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.

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

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