Goldman Sachs Raises Target Prices for GDS and 21Vianet

Summary

Goldman Sachs has raised the target prices for GDS and VNET, citing better-than-expected performance due to strong customer onboarding and pricing resilience. Despite anticipated data center supply constraints in Q2 2025, both companies excelled in high-quality orders and new capacity delivery. Goldman reiterated its ‘buy’ rating for both, increasing GDS’s H-share target from HK$39 to HK$41 and ADR from $40 to $42; VNET’s ADR target from $12 to $13.

Impact Analysis

So basically, Goldman is signaling that GDS and VNET are outperforming expectations despite the broader market concerns about data center supply constraints. The interesting part isn’t just the target price hike, but the underlying confidence in these companies’ ability to secure high-quality orders and deliver new capacity effectively. This suggests that both companies are well-positioned to leverage AI-driven demand, which could be a key growth driver moving forward. The market might be underestimating the resilience of their pricing strategies and customer onboarding speed, which are crucial in a tight supply environment. While the technical analysis shows mixed signals, the fundamental outlook seems robust, especially with AI demand potentially boosting revenues. I’d read this as a strong buy signal, particularly if the market hasn’t fully priced in the potential upside from AI-related growth.Wallstreetcn+ 2Wallstreetcn