Goldman Sachs' report pointed out that recently, there have been signs of demand recovery in the performance of Chinese wholesale IDC (Internet Data Center) operators in the second quarter. With the promotion of Gen-AI and GPU-related capital expenditures, Chinese IDC operators, primarily engaged in wholesale business, are entering a period of increasing demand. These capital expenditures come from cloud hyper-scale enterprises, top-tier internet companies, and AI startups.

The bank stated that GDS Holdings (09698.HK) is still its top pick in the industry, believing that the company's positioning best captures the aforementioned rise in demand. The target price has been raised to 23.4 yuan and it is rated as a 'buy', as the rising demand cycle creates room for valuation appreciation.