GDS Holdings Ltd (NASDAQ: GDS) stock is soaring 5% in Friday's pre-market trading session, following a positive Q2 2025 earnings call and an upward revision of its price target by Nomura. The company, China's largest carrier-neutral data center operator, has shown resilience in its business model and optimistic prospects for future growth.

During the earnings call, GDS management expressed confidence in accelerating customer move-in pace for the second half of 2025. This acceleration is primarily driven by the delivery of previously contracted 152MW hyperscale orders, which is expected to directly translate into revenue growth. Despite ongoing chip supply uncertainties, the company remains optimistic about AI demand prospects, particularly in the inference segment, which is anticipated to become a key driving force in the coming years.

Adding to the positive sentiment, Nomura has adjusted its price target for GDS Holdings to $41.50 from $36.80, while maintaining a Buy rating. This upward revision reflects growing confidence in the company's market position and growth potential. The new target price represents a significant upside from the current trading levels, further fueling investor enthusiasm.

GDS Holdings' overseas business platform, DayOne, also showed strong performance in Q2, adding 246MW in committed orders, including new projects in Thailand and Finland. The company's plans for DayOne's IPO within 18 months underscore its confidence in overseas business development prospects and provide potential for additional funding to support future expansion.