GDS Holdings Ltd (GDS) stock is soaring 5.11% in pre-market trading on Monday, following the release of robust third-quarter financial results and optimistic analyst views on the company's growth prospects in the AI sector.
The data center operator reported impressive Q3 2025 financials, with net revenue reaching RMB 2.887 billion, up 10.2% year-over-year. Notably, the company turned profitable, posting a net profit of RMB 729 million, a significant improvement from the loss in the same period last year. Adjusted EBITDA also saw an 11.4% year-over-year increase to RMB 1.342 billion.
Investor sentiment was further boosted by the company's accelerated customer occupancy in Q3, driven by hyperscale order deliveries and organic growth covering 23,000 square meters. GDS Chairman and CEO Huang Wei emphasized the company's strategic positioning to capture growing AI demand, which is viewed as a key long-term growth catalyst. This outlook is supported by J.P. Morgan analyst Gokul Hariharan, who maintained a Buy rating on GDS Holdings with a price target of $40.00, signaling confidence in the company's future performance.
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