GDS-SW

GDS Holdings opened lower and continued to decline, closing the morning session down 5.86% at HKD 31.16. Despite Q1 revenue surging 30.89% YoY to HKD 3.82 billion and net profit skyrocketing 270.61% to HKD 2.98 billion, driven by AI data center demand, the stock remains 33.62% below its 52-week high of HKD 46.94 and below the 60-day MA of HKD 35.70, reflecting lingering doubts about earnings sustainability. Goldman Sachs previously cut its target price from HKD 47 to HKD 47, while BOCOM and UBS kept GDS as a top pick on AI demand inflection. However, the company's announced plan to invest up to RMB 50 billion in data center expansion signals strong long-term growth prospects.

GDS Holdings opened sharply higher in the morning session, driven by sustained AI data center demand and positive analyst ratings. The stock hit an intraday high of HKD 33.62, up approximately 5.7% from the previous close of HKD 31.8, and closed at HKD 33.6, a gain of roughly 5.66%. Several brokerages, including BOCOM International and UBS, have named GDS as a top pick benefiting from AI-driven demand growth, while Goldman Sachs reiterated its favor for the data center subsector. Fundamentally, Q1 revenue grew 30.89% YoY to HKD 3.818 billion, and net profit surged 270.61% YoY to HKD 2.975 billion, with EPS of HKD 1.4965 and a net profit margin of 78.66%. However, the stock remains 28.42% below its 52-week high of HKD 46.94 and is trading above its 20-day MA of HKD 30.65 but below the 60-day MA of HKD 35.93, with a YTD decline of 5.67%.

GDS Holdings surged about 5.2% in the morning session to HKD 33.34, driven by booming AI data center demand and bullish analyst calls. The company announced plans to spend up to RMB 50 billion over three years to meet surging AI computing needs, with Goldman Sachs, UBS, and BOCOM International naming it a top pick; Goldman raised its target to HKD 47, while Citi lifted its target to USD 58.1. The current price of HKD 33.24 remains below the 20-day MA of HKD 30.77 and 60-day MA of HKD 36.77, is 29% off the 52-week high of HKD 46.94, but has rebounded 22% from the 52-week low of HKD 27.32. However, slower-than-expected client move-ins and board changes have previously weighed on sentiment.

GDS Holdings surged 5.06% to close at HKD 31.54, with turnover of approximately HKD 94.82 million, driven by afternoon buying momentum. A wave of positive analyst reports in early June — including BOCOM International naming GDS-SW a top pick, UBS highlighting it as a sector favorite, and Goldman Sachs maintaining a positive view on cloud/data center subsector — supported the stock's recovery. Fundamentally, Q1 revenue grew 30.89% YoY to HKD 3.82 billion, net profit swung to HKD 2.98 billion, and EPS surged 224.97% to HKD 1.4965, with net margin at 78.66%. However, the stock still trades 32.81% below its 52-week high of HKD 46.94 and below the 60-day MA of HKD 36.90, while Q4 net loss of HKD 534 million highlights earnings volatility.

GDS Holdings closed at HKD 30.02, up 2.95% from the previous close of HKD 29.16. The stock traded in a choppy uptrend, opening at HKD 30.24 in the morning session, climbing to an intraday high of HKD 31.10 around 10:19 BJ, then retreating to HKD 30.10 at midday. The afternoon session opened at HKD 30.04, dipped to an intraday low of HKD 29.98, and finished at HKD 30.02. Strong Q1 2026 results showed operating revenue of HKD 3.82 billion, up 30.89% YoY; net profit of HKD 2.98 billion, surging 270.61% YoY; net profit margin of 78.66%; and EPS of HKD 1.4965, up 224.97% YoY. BOCOM International and UBS highlighted the stock as a top pick amid generative AI-driven demand surge and an inflection point in China's IDC industry, respectively. However, at HKD 30.02, the stock remains below its 20-day MA (HKD 30.82) and 60-day MA (HKD 37.05), 36.05% off the 52-week high of HKD 46.94 and down 15.72% YTD.