GDS Holdings Limited (NASDAQ:GDS) is one of the 12 best mid cap AI stocks to buy according to hedge funds. According to a report released on February 5, J.P. Morgan analyst Gokul Hariharan raised the firm’s price target on GDS Holdings Limited (NASDAQ:GDS) from $40 to $55 while maintaining a Buy rating. The firm’s upwardly adjusted price target suggests a further 18% upside from current levels. This upside is consistent with the Wall Street analysts’ median upside estimate of 11% based on 19 analysts covering the stock.
Ahead of the analyst’s recent price target increase, GDS Holdings Limited (NASDAQ:GDS) issued a capital markets update that drew investor attention. The company revealed on February 6 that it had filed a Form 6-K with the U.S. Securities and Exchange Commission. The filing relates to the transaction documents associated with a $300 million private placement of convertible preferred shares issued to a Chinese institutional investor. By raising capital through convertible preferred equity, GDS Holdings Limited (NASDAQ:GDS) highlighted its ongoing capacity to attract capital from institutional investors. The additional capital is expected to enhance the company’s financial flexibility, supporting its day-to-day operations and growth plans. At the same time, the filing reflects GDS’s commitment to meeting regulatory standards in both the United States and Hong Kong.
GDS Holdings Limited (NASDAQ:GDS) is an operator and developer of data centers. The company is operating in the People’s Republic of China. It provides colocation, consulting, managed hosting, managed cloud, and server middleware services. The company serves large Internet companies, telecommunications carriers & IT service providers, multinational corporations, cloud service providers, financial institutions, and the large domestic private sector.
While we acknowledge the potential of GDS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
