Why GDS Is Still a Solid Pick Among China Data Center Stocks

GDS Holdings Ltd. (NASDAQ:GDS) is one of the best performing data center stocks to buy now. On August 21, 2025, Bank of America analyst Daley Li reaffirmed a Buy rating on GDS Holdings Ltd. (NASDAQ:GDS) with a price target of $47.60 after the company reported stronger-than-expected Q2 results.

Q2 revenue rose 12% year-over-year, while adjusted EBITDA increased 11%, both above consensus, supported by rising demand in China and new customer wins that lifted utilization rates.

International operations, run under the DayOne unit, showed exceptional momentum. Revenue from the segment expanded 1.4x year-over-year, while adjusted EBITDA grew 1.7x, reflecting rapid overseas adoption and successful execution of capacity expansion.

Despite the solid Q2 performance, the company maintained its FY 2025 guidance, which Li interprets as conservative given the operational progress. He noted that domestic demand resilience, coupled with accelerating international scale, supports a durable growth trajectory.

GDS Holdings Ltd. (NASDAQ:GDS) is a leading developer and operator of high-performance data centers in China. The company provides colocation, managed hosting, and cloud services to enterprise customers, hyperscalers, and financial institutions.

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Disclosure: None. This article is originally published at Insider Monkey.