Why VNET Group Inc. (VNET) Surged On Wednesday

We recently published a list of These 10 Stocks Led Rally on Wednesday. In this article, we are going to take a look at where VNET Group Inc. (NASDAQ:VNET) stands against other stocks that led rally on Wednesday.

Ten companies led the charge on Wednesday, bucking a mostly pessimistic broader market, on the back of better outlook, positive earnings performance, and news of government support.

Wall Street’s main indices finished mix, with the Dow Jones and S&P 500 declining 0.50 percent and 0.27 percent, respectively. Nasdaq was the sole gainer, albeit inching up only 0.03 percent during the day.

In this article, we will explore the reasons behind the 10 firms’ strong performance. To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close up image of a application hosting server with the company’s branding on it.

VNET Group Inc. (NASDAQ:VNET)

VNET Group grew its share prices by 13.44 percent on Wednesday to close at $11.31 apiece as investors repositioned their portfolios amid the company’s heavy expansion on Artificial Intelligence.

In its last earnings call, VNET Group announced higher capital spending this year on the back of robust demand for its wholesale services. It underscored that it would work closely with its strategic suppliers and maximize the synergies in order to ensure that its capital spending would grow at a steady pace.

At the same call, the company expects to deliver approximately 191 megawatts (MW) of IT capacity until the first quarter of 2025, as well as some 105 MW in the second and third quarters of 2025.

Overall, VNET ranks 5th on our list of stocks that led rally on Wednesday. While we acknowledge the potential of VNET 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 VNET 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.