$Vnet(VNET.US) and $GDS(GDS.US) both rose over four percentage points. On a day when tech stocks generally fell, the two Chinese concept data center stocks bucked the trend. The logic of AI cabinet demand spilling over to third-party data centers has been discussed for half a year, with 70% of wholesale orders coming from AI. Is this wave a realization of fundamentals, or a rotational catch-up rally driven by capital clustering?
It looks more like a mix of the former and the latter—the orders are real, but the single-day four-point elasticity is clearly given by liquidity. When the pullback comes, whether the baton is still there says more than the gains of these two days.
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