Why Analysts See VNET’s (VNET) Data Center Story Gaining Momentum

VNET Group Inc. (NASDAQ:VNET) is one of the best performing data center stocks to buy now. On September 12, DBS reiterated a Buy rating on VNET with a $12.50 price target, following a nearly 20% rally since the analyst lifted the target from $9 in late July when shares traded near $8.30.

The rating reaffirmation came a day after VNET announced a 40MW wholesale order from a leading internet company for its new Gu’an IDC Campus in the Greater Beijing Area. The project will be delivered in phases and highlights the company’s ability to attract large-scale customers in a competitive market.

Why Analysts See VNET’s (VNET) Data Center Story Gaining Momentum

Management emphasized that the order will support the client’s use of domestic chips, a market segment expected to be a key driver of computing demand in China. VNET is also deploying advanced liquid cooling technology for this order, designed to reduce energy consumption and improve power utilization efficiency.

The deal reinforces VNET’s execution capabilities at a time when hyperscale demand remains resilient despite broader market uncertainty.

Apart from DBS, Morgan Stanley’s analyst Tom Tang also reiterated his Buy rating on the stock on August 28, with an unchanged price target of $12.00.

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.

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