Shares of GDS Holdings Ltd (GDS-SW) surged 6.29% in Wednesday's trading session, following the release of the company's impressive first-quarter earnings report. The Chinese data center operator delivered a significant earnings beat and returned to profitability, surpassing analysts' expectations.

GDS Holdings reported adjusted earnings of CNY3.44 per share for the quarter ended March 31, a remarkable turnaround from the CNY-1.92 loss per share in the same period last year. This result shattered the average analyst forecast of a CNY-0.91 loss per share. The company's revenue also showed solid growth, increasing by 3.6% year-over-year to CNY2.72 billion, meeting analysts' projections.

The market's positive reaction reflects growing investor confidence in GDS Holdings' business model and future prospects. Analysts maintain a bullish stance on the stock, with 15 out of 17 recommending either "strong buy" or "buy." The average Wall Street price target for GDS Holdings stands at CNY42.00, suggesting further upside potential. The company's shares have already gained 14.0% year-to-date, indicating sustained investor interest in the Chinese data center sector.