Why VNET Group Inc. (VNET) Went Up on Wednesday

We recently compiled a list of the 10 Companies Jump on Better Earnings, Outlook. In this article, we are going to take a look at where VNET Group Inc. (NASDAQ:VNET) stands against the other stocks.

The stock market extended its winning streak on Wednesday, closing firmer as investors seemed to have already priced in the news of tit-for-tat tariffs and uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies traded in line with the broader market sentiment, mostly on the back of record achievements in their latest earnings performance and optimistic outlook guidance.

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)

Shares of VNET Group Inc. grew for a third day on Wednesday, adding 12.86 percent to its valuation to close at $8.51 apiece on continued investor confidence about its business on the back of the booming Artificial Intelligence industry.

VNET—a carrier-neutral data center services provider based in China that operates cloud services and server management products—is planning to heavily invest in AI to grow its business.

In its earnings call in November last year, the company announced targets to increase its capital expenditures 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 said it expects to deliver approximately 191 megawatts (MW) of IT capacity up until the first quarter of 2025, as well as some 105 MW in the second and third quarters of 2025.

Overall VNET ranks 3rd on our list of Wednesday’s top gainers. While we acknowledge the potential of VNET 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 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.