Home / Business and Economy / VNET Surges 64% YTD as AI Demand Fuels Data Center Boom
VNET Surges 64% YTD as AI Demand Fuels Data Center Boom
23 Aug
Summary
- VNET, a leading data center provider, has seen a 64% year-to-date surge
- Demand from generative AI and high-performance computing is driving growth
- Analysts maintain bullish outlook, with price targets up to $24
As of August 24, 2025, VNET Group Inc. (NASDAQ:VNET), a leading pure-play data center provider in China, has emerged as one of the best-performing data center stocks. The company has seen a strong 64% year-to-date increase in its share price, and an impressive 319% gain over the past year.
This investor enthusiasm is largely driven by the surging demand for data center capacity from the ever-evolving generative AI and high-performance computing (HPC) technologies. VNET, which is scheduled to report its latest results on August 21, has managed to maintain high expectations and an overwhelmingly positive analyst consensus.
Analysts have been broadly supportive of VNET's investment case, with Morgan Stanley's Yang Liu and Citi's Louis Tsang both reaffirming their "Buy" ratings on the stock. Tsang, in particular, has a price target of $20, which is closer to the consensus high of $24. He highlighted VNET's $50 million share repurchase program, upcoming projects, and its partnership with Shandong Highspeed on green power as key drivers that could further boost the company's performance.
Beyond these near-term catalysts, VNET's expansion of its IDC (internet data center) capacity and its exposure to AI-related demand are seen as important long-term growth levers. The company's efforts to cut energy costs and improve margins are also expected to contribute to its continued success.
