Raymond James Reiterates Strong Buy Rating on GDS Holdings (GDS) Stock

Core Viewpoint - GDS Holdings Limited is identified as a strong investment opportunity, particularly due to its positioning in the growing data center market in China, with a focus on AI chip availability and strategic milestones achieved [1][2]. Group 1: Company Performance - In Q2 2025, GDS Holdings reported net revenue of RMB2,900.3 million (US$404.9 million), marking a 12.4% year-over-year growth, primarily driven by the ramp-up of its data centers [2]. - The company successfully completed an IPO of its C-REIT on the Shanghai Stock Exchange, which is seen as a significant strategic milestone [2]. Group 2: Market Position and Opportunities - GDS Holdings is well-positioned to capture new business opportunities in Tier 1 markets, particularly due to the evolution of AI technology [2]. - The company has established strong relationships with leading technology firms in both China and the U.S., which supports its long-term value creation strategy [3]. Group 3: Investor Sentiment and Market Dynamics - Investor sentiment has been positively influenced by early signs of AI-related demand, exemplified by a major 152-megawatt deal with Alibaba [3]. - Despite some volatility in share performance due to concerns over capital needs and geopolitical risks, the fundamentals of GDS remain strong, with expectations of accelerating revenue and progress toward deleveraging [3].