From Financial Modeling Prep: 2025-05-19 06:25:00

UBS analysts believe concerns over AI-driven data center spending in China are exaggerated. Top companies like GDS and VNET now trade at attractive levels after a significant valuation correction. Stable project delivery and potential REIT launches could drive further upside. UBS recommends buying GDS and VNET, citing strong financial profiles and growth prospects.

GDS Holdings (GDS) and VNET Group (VNET) are UBS’s top picks, with Buy ratings and lowered price targets. Both companies have solid liquidity metrics and growth potential. Investors can model potential re-rating using FMP’s Advanced DCF API to simulate AI cash flows and REIT dividends over the next 5-10 years.

Risks include variability in AI demand, regulatory hurdles, and macro uncertainties. Investors should monitor project awards and regulatory filings closely. UBS advises investors to revisit entry points for GDS and VNET, leverage real data for modeling, and keep an eye on REIT developments for potential valuation re-ratings.



Read more at Financial Modeling Prep:: UBS Sees Data Center AI Investment in China as an Undervalued Opportunity