Why VNET Group (VNET) Soared Last Week?

We recently published a list of 10 Firms That Soared Last Week. In this article, we are going to take a look at where VNET Group, Inc. (NASDAQ:VNET) stands against other firms that soared last week.

Last week saw volatile trading in the stock market as investors scrambled to react from a series of positive and negative catalysts which sparked buying and selling positions across the board.

On Friday alone, Wall Street’s major indices fell into the red territory over renewed fears of growing trade tensions from some of the world’s largest economies, coupled with expectations of a higher inflation rate.

However, 10 firms defied a broader market slump, posting impressive gains in just a week’s trading.

To come up with last week’s biggest advancers, 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, Inc. (NASDAQ:VNET) saw its share prices surge by 29 percent in the first trading week of the month, to end Friday at $9 apiece as investors snapped up shares in the company over continued optimism about its business, as it seeks to ride the booming AI industry by heavily expanding in AI.

In its last earnings call, VNET Group (NASDAQ:VNET) 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 6th on our list of firms that soared last week. 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 time frame. 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.