Bank of America: Raises GDS-SW target price to HKD 52.8, maintains "Buy" rating
Bank of America released a research report stating that due to the improved outlook for data center demand in China and the accelerated adoption of domestic AI chips, it has raised the target price for GDS-SW's Hong Kong stock by 6%, from HKD 49.7 to HKD 52.8; the target price for GDS's U.S. stock has been increased from USD 50.6 to USD 53.8, with an investment rating maintained at "Buy." The report noted that Alibaba Group recently stated at the 2025 Alibaba Cloud Summit that its token consumption doubles every 2 to 3 months, reflecting an increase in AI workloads. Additionally, Alibaba will increase its investment in AI and cloud computing by more than RMB 380 billion over the next three years. The report also pointed out that the progress of domestic chips is good, supporting the growth of data center orders. Based on these factors, Bank of America has raised its adjusted EBITDA forecast for GDS for the years 2026 to 2027 by 1% to 3%
According to the Zhitong Finance APP, Bank of America has released a research report stating that due to the improved outlook for data center demand in China and the accelerated adoption of domestic AI chips, it has raised the target price for GDS-SW (09698) in Hong Kong stocks by 6%, from HKD 49.7 to HKD 52.8; the target price for GDS (GDS.US) in U.S. stocks has been raised from USD 50.6 to USD 53.8, with an investment rating maintained at "Buy."
The report indicates that Alibaba-W (09988) recently stated at the 2025 Alibaba Cloud Summit that its token consumption doubles every 2 to 3 months, reflecting an increase in AI workloads. Additionally, Alibaba plans to increase its investment in AI and cloud computing by more than RMB 380 billion over the next three years. The report also notes that the progress of domestic chips is good, supporting the growth of data center orders. Based on these factors, Bank of America has raised its adjusted EBITDA forecast for GDS for the years 2026 to 2027 by 1% to 3%
