US Stock Market Move | IDC supply and demand dynamics are expected to benefit VNET Group, Inc. Sponsored ADR (VNET.US) up more than 8%

On Tuesday, VNET Group, Inc. Sponsored ADR (VNET.US) rose over 8% to $5.50. Recently, Morgan Stanley released a report stating that the supply and demand dynamics of IDC in North China are about to reverse due to a large-scale company's active investment in AI computing, and VNET Group, Inc. Sponsored ADR will benefit from this. VNET Group, Inc. Sponsored ADR was rated as "Hold" with a target price of $5.80. The report mentioned that VNET Group, Inc. Sponsored ADR's IDC product portfolio meets the customer's needs well in terms of location, scale, scalability, and fast delivery, and the company has gained a considerable market share in the past two years. In the past year, the company has signed new orders totaling approximately 300MW, with over 90% used to meet customer demand for AI. Considering the discounted electricity prices and low latency network in Ulanqab and Huailai bases, it is expected that the customer's demand in 2025 will not be lower than in 2024.