10 Best Mid Cap Stocks to Buy with Highest Upside Potential

7. GDS Holdings Limited (NASDAQ:GDS)

Average Upside Potential: 65.24%

GDS Holdings Limited (NASDAQ:GDS) is one of the best mid cap stocks to buy with highest upside potential. On May 20, GDS Holdings reported a strong start to 2026, highlighted by record-breaking sales performance. The company achieved net new bookings of ~200MW during Q1, the highest for a single quarter to date, driven by intensifying demand for AI infrastructure. Net revenue increased 23.6% year-over-year to RMB3.37 billion, with net income rising significantly to RMB2.65 billion, supported by a dilution gain from its investment in DayOne Data Centers.

Operational growth remained steady as the company expanded its footprint and capacity. Total area committed increased by 11.7% year-over-year to 725,485 sqm, while the utilization rate for area in service reached 77.3%. Management emphasized that the company is uniquely positioned to capture the next phase of growth in the AI sector, while maintaining financial flexibility through strategic capital initiatives such as the sale of DayOne shares and private placements of convertible preferred shares.

The company concluded the quarter with a solid financial position, reporting RMB14.8 billion in cash and cash equivalents. Adjusted EBITDA grew 47.2% year-over-year to RMB1,948.7 million, reflecting continued operational efficiency and corporate-level cost savings. Moving forward, GDS remains focused on core business expansion and disciplined capital management to drive sustainable, long-term value for its stakeholders.

GDS Holdings Limited (NASDAQ:GDS) is an operator and developer of data centers. The company is operating in the People’s Republic of China. It provides colocation, consulting, managed hosting, managed cloud, and server middleware services.