M Stanley Upgrades GDS Holdings and VNET Group to Overweight with Increased Price Targets

AI Data Center Deployments: Hyperscale operators are increasingly moving data center deployments to remote areas due to scale demand, resource availability, and supportive policies, according to Morgan Stanley's research.

Market Dynamics: The supply-demand dynamics in remote data center markets are expected to be healthier and offer stable returns in the AI era, benefiting leading operators with strong resource pipelines.

GDS Holdings Outlook: Morgan Stanley has rated GDS Holdings as Overweight, raising its target price from USD 54 to USD 64, indicating strong confidence in the company's prospects.

VNET Group Rating: VNET Group is also rated as Overweight by Morgan Stanley, with its target price increased from USD 14 to USD 16, highlighting its first-mover advantage in the market.