VNET Group (VNET) Climbs 10.9% on China AI Boom

We recently published 10 Stocks Crushing Wall Street, AI Stocks Dominate. VNET Group, Inc. (NASDAQ:VNET) is one of the top performers on Tuesday.

Shares of VNET Group surged by 10.91 percent on Wednesday to finish at $10.37 each as investors gobbled up shares in Chinese firms that will largely benefit from the artificial intelligence boom amid whopping investments in the sector.

The overall investor optimism can be attributed to Alibaba Group’s ramped-up spending in the AI sector to $53 billion, as it plans to make the sector a core priority alongside e-commerce.

Alibaba’s announcement also allayed fears of an AI bubble—concerns which were raised earlier this year by none other than its chief executive.

Expansion into the AI sector bodes well for VNET Group, Inc. (NASDAQ:VNET), as it positions itself through expanding into data centers in China.

Alibaba aside, the China Academy of Information and Communications Technology also announced that the Chinese AI sector has already grown by 24 percent year-on-year to 900 billion yuan.

Additionally, the number of AI companies has already surpassed 5,300, accounting for 15 percent globally.

While we acknowledge the potential of VNET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.