We recently published 10 Stocks Crushing Wall Street, AI Stocks Dominate. GDS Holdings Ltd. (NASDAQ:GDS) is one of the top performers on Tuesday.
GDS Holdings saw its share prices jump by 8.08 percent on Wednesday to close at $40.67 apiece as investors loaded portfolios in Chinese artificial intelligence (AI) stocks, helped by Alibaba Group’s new $53-billion investment in the sector.
According to Alibaba, it partnered with chip giant Nvidia Corp. for the expansion of global data centers and AI products as it positions the sector as a core priority alongside its e-commerce platform.
Source: Pixabay
Among the developments are physical AI capabilities such as data synthesis, model training, environmental simulation, and validation testing.
The news spilled over to Chinese companies, including GDS Holdings Ltd. (NASDAQ:GDS), an AI infrastructure company, with strong confidence that further investments in the industry would largely bolster demand for data centers.
In other developments, investor sentiment was also boosted by announcements earlier this week that China’s AI sector has grown by 24 percent year-on-year to 900 billion yuan.
According to the China Academy of Information and Communications Technology, the number of AI companies in China has already surpassed 5,300, accounting for 15 percent globally.
While we acknowledge the potential of GDS 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.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.