Why Analysts See VNET's (VNET) Data Center Story Gaining Momentum

VNET Group Inc. (NASDAQ:VNET) is one of the best performing data center stocks to buy now. On September 12, DBS reiterated a Buy rating on VNET with a $12.50 price target, following a nearly 20% rally since the analyst lifted the target from $9 in late July when shares traded near $8.30.

The rating reaffirmation came a day after VNET announced a 40MW wholesale order from a leading internet company for its new Gu’an IDC Campus in the Greater Beijing Area. The project will be delivered in phases and highlights the company’s ability to attract large-scale customers in a competitive market.

Management emphasized that the order will support the client’s use of domestic chips, a market segment expected to be a key driver of computing demand in China. VNET is also deploying advanced liquid cooling technology for this order, designed to reduce energy consumption and improve power utilization efficiency.

The deal reinforces VNET’s execution capabilities at a time when hyperscale demand remains resilient despite broader market uncertainty.

Apart from DBS, Morgan Stanley’s analyst Tom Tang also reiterated his Buy rating on the stock on August 28, with an unchanged price target of $12.00.

While we acknowledge the potential of VNET 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.

READ NEXT: 11 Best Low-Priced Technology Stocks to Buy Right Now and 11 Best Emerging Technology Stocks to Buy Right Now.

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