GDS Holdings GDS.OQ GDS US EQUITY: TECHNOLOGY Ready for domestic expansion Reiterate Buy with TP lifted to USD54.5 Domestic AIDC demand likely to accelerate in FY26F with improved chip supplies We expect continued momentum of AI-related capex spending by Chinese cloud service providers (CSPs) in FY26F, which should boost new bookings for independent data center operators in China, including GDS. We believe domestic CSPs' access to GPU chips, previously deemed to be a bottleneck for new AIDC (AI data center) ...

Core Insights - Rackspace Technology Inc. has experienced a significant decline in stock performance, with a drop of over 45% in the last year and continued challenges in 2025 [1] - The company is focusing on stabilizing its private cloud revenue and expanding its market presence, particularly in mid-market and enterprise segments [2] - The appointment of Gajen Kandiah as the new CEO is seen as a potential turning point for the company, as he is expected to lead an AI-first multi-cloud strategy [3] - Rackspace has achieved the AWS Automotive Competency, indicating its capability in supporting digital transformation for automotive companies [4] Company Challenges - The company is facing slowing growth, mounting losses, and a lack of transformational deals, alongside significant leverage [1] - Despite some improvements in cash flow generation, strong execution of its strategy is necessary to regain investor confidence [2] Strategic Developments - The new CEO, Gajen Kandiah, brings expertise in services, infrastructure, software, and AI, which may help in reversing the company's current performance slide [3] - The AWS Automotive Competency achievement highlights Rackspace's commitment to enhancing its service offerings in the automotive sector [4]