We recently published an article titled These 10 Stocks Defied Tuesday’s Bloodbath. 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 fell further into negative territory on Tuesday as trade tensions between the US and its largest trading partners continued.
The Dow Jones fell the most, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the start of President Donald Trump’s blanket 25-percent tax on goods from Canada and Mexico on Tuesday, and a 10-percent tax on Chinese imports, both Canada and China moved to retaliate with higher taxes on US imports. Mexico is also expected to follow suit.
Despite uncertainties, 10 companies managed to stay stronger, posting impressive gains mostly on the back of better earnings performance. In this article, we have detailed the reasons behind their gains.
To come up with Tuesday’s top gainers, we considered only the stocks with $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) jumped by 11.31 percent on Tuesday to end at $35.44 apiece as investors resorted to bargain-hunting following a 16.32-percent drop on Monday.
GDS Holdings Limited (NASDAQ:GDS), a company that builds and runs data centers in China and Southeast Asia, earns a generally bullish sentiment among analysts amid the booming Artificial Intelligence industry in China, which is already creating a ripple effect in GDS’s business.
Despite economic uncertainties from the ongoing trade war, analyst Louis Tsang from Citi Group raised his outlook and price target for GDS Holdings Limited (NASDAQ:GDS).
From $25.1 previously, Tsang now projects GDS Holdings Limited (NASDAQ:GDS) to more than double to $51.2. The price target represents a 44-percent upside from the company’s last stock price.
He also maintained a “buy” rating on the stock, saying it was based on optimism toward growing AI data center-related spending from Chinese cloud service providers.
Overall GDS ranks 6th on our list of Tuesday’s top gainers. 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.