Understanding the Market | GDS-SW rose over 14% as AI drives data center prosperity, the company has fully launched cooperation with cloud service providers
GDS-SW's stock price rose by more than 14%, with an increase of 13.83% as of the time of publication, trading at HKD 38.2, with a transaction volume of HKD 327 million. Alibaba and Baidu have begun using self-designed chips to train AI large models, reducing their reliance on NVIDIA chips. Alibaba plans to issue USD 3.2 billion in zero-coupon convertible bonds, with 80% allocated to enhancing cloud infrastructure. GDS collaborates with several cloud service providers, including Alibaba Cloud and Tencent Cloud, with core business continuing to grow
According to Zhitong Finance APP, GDS-SW (09698) rose over 14%, and as of the time of writing, it increased by 13.83%, trading at HKD 38.2, with a transaction volume of HKD 327 million.
On the news front, it has been reported that insiders say Alibaba and Baidu have begun using internally designed chips to train their AI large models, replacing some NVIDIA chips. Previously, Alibaba announced plans to issue zero-coupon convertible preferred notes with a total principal amount of approximately USD 3.2 billion, which will mature on September 15, 2032, and are unsecured preferred debt. The plan is to issue USD 3.2 billion in "zero-coupon convertible bonds," with about 80% allocated to enhancing cloud infrastructure, including expanding data centers, technology upgrades, and optimizing services.
Public information shows that Alibaba is GDS's largest customer, accounting for 33.5%/30.1% of GDS's total committed area/net income in China for the third quarter of 2024. Currently, GDS has fully launched cooperation with major cloud service providers, which now include: Alibaba Cloud, Tencent Cloud, AWS, Azure, Baidu Cloud, Huawei Cloud, UCloud, and VMware's VCloud Datacenter, among others. Huatai Securities previously pointed out that the company's core highlights include: a continuous increase in the domestic data center business's listing rate and new signed orders; the data center industry is in a cycle of improving supply and demand; DayOne is actively landing new projects in Europe and Southeast Asia; and successfully issuing the first batch of domestic data center REITS projects
