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VNET’s (VNET) Capacity Expansion and AI Tailwinds Drive Analyst Optimism

VNET Group Inc. (NASDAQ:VNET) is one of the best data center stocks to buy now. VNET is another pure-play data center operator that has seen a strong performance, up 64% year-to-date and an impressive 319% over the past year. No doubt, demand for capacity from the ever-evolving generative AI and high-performance computing (HPC) is at the core of this investor enthusiasm.

While the company is scheduled to report its results on August 21, expectations remain high, and analyst consensus is overwhelmingly positive. Analyst sentiment has been broadly supportive, indicating confidence in its investment case.

A data center filled with the latest servers and networking equipment representing the company’s cutting edge security infrastructure.

First of the two names that have recently published their optimistic reports is Yang Liu from Morgan Stanley. In a report released on July 22, the analyst maintained a Buy rating on VNET Group (NASDAQ:VNET) and raised the price target to $12 from $10.

Back in late June, Citi analyst Louis Tsang also reaffirmed his positive stance on VNET Group Inc. (NASDAQ:VNET), keeping a Buy rating on the stock and a price target of $20, which is closer to the consensus high of $24. At that time, the company had raised its FY 2025 revenue and EBITDA guidance, which was already in line with Tsang’s above-consensus forecasts, reinforcing confidence in its operating momentum.

Tsang highlighted that VNET’s $50 million share repurchase could help stabilize the stock. He also cited upcoming projects such as B30, along with possible Hong Kong and C-REIT listings, as events that may drive further interest. In addition, he noted the company’s partnership with Shandong Highspeed on green power, which is expected to cut energy costs and support margin improvement for VNET Group Inc. (NASDAQ:VNET) and its clients.

Beyond these near-term drivers, Tsang emphasized VNET’s expansion of IDC capacity and its exposure to AI-related demand as important long-term growth levers.

Tsang’s bullish thesis has held up so far, as the stock has gained another 11% since his report. The 1-year median consensus price target for the stock stands at $12.2, which still indicates a substantial potential upside of 56% and further room for the rally to continue.

VNET Group Inc. (NASDAQ:VNET) is a leading pure-play data center provider in China, specializing in multi-carrier and multi-cloud internet data center (IDC) services.

While we acknowledge the potential of VNET to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VNET and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Large Cap Tech Stocks to Buy Now and 10 Best Big Tech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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