Is GDS Holdings Limited (GDS) Among the Best AI Stocks to Buy and Hold for the Next 5 Years?

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.

Is GDS Holdings Limited (GDS) Among the Best AI Stocks to Buy and Hold for the Next 5 Years?

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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 risk and potential of GDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GDS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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