VNET Group's stock is soaring 5.01% during Thursday's trading session, as investors react positively to analyst projections of potential benefits from Alibaba's long-term AI spending and IT power plans. Nomura analysts Ethan Zhang and Bing Duan highlighted the data-center operator's prospects in a recent note, maintaining a buy rating with a $13.20 target on VNET's ADRs.

The company's outlook appears promising, with orders expected to rise in the second half of the year following a muted second quarter. This optimism is fueled by a new contract for VNET's internet data center in Hebei province and potential renegotiations in Jiangsu province. Additionally, VNET's plan to raise capital expenditure and enhance its capacity delivery capability in the second half of 2026 could position the company to bid for more projects, further boosting investor confidence.

The surge in VNET's stock price reflects growing investor enthusiasm for companies poised to benefit from the expanding AI infrastructure market. As tech giants like Alibaba continue to invest heavily in AI technologies, data-center operators like VNET Group are well-positioned to capitalize on the increasing demand for robust IT infrastructure and services.