Bank of America Raises GDS-SW (09698) Target Price to HK$52.8, Maintains "Buy" Rating

Stock News
09/25

Bank of America has issued a research report raising the Hong Kong stock target price for GDS-SW (09698) by 6% from HK$49.7 to HK$52.8, citing improved prospects for China's data center demand and accelerated adoption of domestic AI chips. The US stock target price for GDS Holdings Ltd (GDS.US) was also raised from $50.6 to $53.8, while maintaining a "Buy" investment rating.

The bank noted that Alibaba-W (09988) recently stated at the 2025 Alibaba Cloud Summit that its token consumption doubles every 2 to 3 months, reflecting rising AI workloads. Additionally, Alibaba plans to increase AI and cloud computing investments by over RMB 380 billion over the next three years.

The report also highlighted that domestic chip development is progressing well, supporting growth in data center orders. Based on these factors, Bank of America has raised its adjusted EBITDA forecasts for GDS-SW by 1% to 3% for 2026-2027.

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