VNET Group (VNET) Soars 10.8% as Goldman Sachs Bullish on Chinese Stocks

We recently published Wall Street Can’t Keep up With These 10 Stocks on Fire. VNET Group, Inc. (NASDAQ:VNET) was one of the top performers on Thursday.

VNET Group rallied for a second day on Thursday, jumping 10.85 percent to close at $10.32 as investors gobbled up shares in Chinese AI companies, supported by an investment firm’s continued bullish outlook for the industry.

VNET Group, Inc. (NASDAQ:VNET) rallied alongside its US-listed Chinese counterparts namely Alibaba Group, GDS Holdings, PDD Holdings Inc., and JD.com, among others, after Goldman Sachs said that it believes 2026 would be another year of growth for Chinese stock benchmarks, with earnings supported by AI growth and policy measures.

“Our expected equity gains in 2026 are almost entirely earnings-driven,” the investment firm said, noting that profit growth will be supported by AI, “Going Global,” and anti-involution policy.

The MSCI China Index alone is forecast to jump by 20 percent to 100 by the end of the year, while the CSI 300 index is expected to grow by 12 percent.

Meanwhile, VNET Group, Inc. (NASDAQ:VNET) is one of the leading data center providers in China, with a plan to develop 10 GW of green computing capacity in both China and the overseas markets over the next few years.

In June last year, VNET Group, Inc. (NASDAQ:VNET) unveiled its so-called Hyperscale 2.0 initiative, which would focus on AI data center innovation.

Among its prospective regions are Inner Mongolia, Hebei, Beijing, and the Yangzi River Region, and it will feature MW-level racks, 100MW single facilities, and GW-scale campuses.

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.

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.