GDS Holdings Limited (NASDAQ:GDS) is one of the 15 Best AI Stocks to Buy and Hold for the Next 5 Years .
On June 9, Bloomberg reported shares of GDS Holdings Limited (NASDAQ:GDS) soared after China is preparing to invest about 2 trillion yuan ($295 billion) over the next five years to build data centers nationwide. GDS Holdings Limited (NASDAQ:GDS) American depository receipts rose about 7% following the report.
According to Bloomberg, government agencies, including the National Development and Reform Commission, are drafting a blueprint for a nationwide network of interconnected computing hubs. State-owned China Mobile and China Telecom would operate most of the facilities.
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Bloomberg reported the plan would rely on local suppliers for at least 80% of the technology. Funding is expected to come mainly from sovereign debt, state investment funds, bank loans, and private capital. The blueprint remains in early discussions and could change, but it is planning to connect scattered data facilities into a unified network by 2028. It will grow access to high-performance computing and support China's broader AI ambitions.
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GDS Holdings Limited (NASDAQ:GDS) develops and operates data centers in China. It builds, operates, and transfers data centers at other locations.
While we acknowledge the potential of GDS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
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