GDS-SW (09698) surged over 14%, and as of press time, the stock was up 13.83% to HK$38.2 with trading volume reaching HK$327 million.

On the news front, sources revealed that Alibaba and Baidu have begun adopting internally designed chips to train their AI large language models, replacing some NVIDIA chips. Previously, Alibaba announced plans to issue zero-coupon convertible preferred notes with a total principal amount of approximately $3.2 billion, maturing on September 15, 2032, as unsecured senior debt. The planned $3.2 billion "zero-coupon convertible bond" issuance will allocate approximately 80% of proceeds toward enhancing cloud infrastructure, including data center expansion, technology upgrades, and service optimization.

Public information shows that Alibaba is GDS Holdings Ltd's largest customer, accounting for 33.5%/30.1% of GDS Holdings Ltd's total committed area/net revenue in China for the third quarter of 2024. Currently, GDS Holdings Ltd has fully expanded cooperation with major cloud service providers, including Alibaba Cloud, Tencent Cloud, AWS, Azure, Baidu Cloud, Huawei Cloud, UCloud, and VMware's VCloud Datacenter.

Huatai Securities previously highlighted the company's core strengths: continued improvement in utilization rates for domestic data center business with increased new order signings; the data center industry is in a cycle of supply-demand improvement; DayOne is actively implementing new projects in Europe and Southeast Asia; and successful issuance of China's first batch of data center REITS projects.