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    Is GDS Holdings (GDS) Undervalued Following New AI Take Or Pay Contracts?

    Simply Wall St·10/27/2026 08:12:37
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    GDS Holdings (NasdaqGM:GDS) has secured binding take or pay contracts for AI data center capacity, drawing fresh attention to a stock trading on a P/E multiple below many IT peers.

    The fresh take or pay contracts arrive after a volatile period for GDS Holdings, with the 1-month share price return down 30.39% and the year-to-date move down 40.51%, even as the 3-year total shareholder return is up 122.97% and the 1-year total shareholder return is down 36.46%.

    Scan other AI infrastructure plays with contracted demand by reviewing the hand picked 55 AI infrastructure stocks.

    GDS Holdings now combines long term AI contracts with a P/E below many IT peers. After such a steep share price reset, are you paying for a strong business at a fair tag or still getting a discount?

    Most Popular Narrative: 55% Undervalued

    The most followed narrative puts GDS Holdings fair value at $50.27, well above the last close at $22.81, and ties that gap directly to contracted AI data center demand and a funded build program.

    The current valuation and this narrative’s bullish stance imply that the share price does not fully reflect multi year contracted capacity, the planned RMB 30 to 50b build program, or the cash flow potential suggested by management’s updated 2026 revenue and adjusted EBITDA guidance.

    See why 13 investors see GDS Holdings as 55% undervalued.

    Result: Fair Value of $50.27 (UNDERVALUED)

    Still, the bullish GDS Holdings story depends heavily on smooth funding for the RMB 30b to 50b build and stable portfolio cash yields near 10% to 11%.

    Find out about the key risks to this GDS Holdings narrative.

    Next Steps

    If this mix of optimism and concern feels familiar, treat it as your cue to act quickly and verify the facts independently using the 4 key rewards and 2 important warning signs.

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