GDS Holdings Q2 revenue up 12.4% YoY to $404.9mln.

• GDS Holdings Q2 net revenue up 12.4% YoY to RMB2,900.3m • Net loss reduced to RMB70.6m from RMB231.8m YoY • Adjusted EBITDA up 11.2% YoY to RMB1,371.8m • Adjusted EBITDA margin at 47.3% • Digital data growth drives revenue increase • Company focuses on high-performance data centers in China

Title: GDS Holdings Reports Strong Q2 2025 Earnings, Driven by Digital Data Growth

GDS Holdings Ltd. (HKSE: 09698) has reported its Q2 2025 earnings, showcasing a robust performance driven by digital data growth. The company's net revenue surged by 12.4% year-over-year (YoY) to RMB2,900.3 million, while the net loss was significantly reduced to RMB70.6 million from RMB231.8 million YoY. The adjusted EBITDA climbed 11.2% YoY to RMB1,371.8 million, with the adjusted EBITDA margin standing at 47.3%.

The company's focus on high-performance data centers in China has been a key driver of this growth. According to Liu Liehong, the director of the National Data Bureau, China's 5G rollout and gigabit broadband expansion have significantly boosted the country's computing power, positioning it as the world's second-largest computing power after the US [2].

GDS Holdings' strategic emphasis on digital data has proven to be a winning strategy. The company's Q2 2025 revenue estimates, which stood at $3.07 billion, exceeded the consensus estimate of $2.96 billion, indicating a strong performance in the quarter [1]. The full-year 2025 revenue estimates, set at $12.47 billion, also suggest continued growth momentum.

Despite the positive earnings, investors should remain cautious. The company's stock has been down by -3.60% following the Q2 2025 earnings release, reflecting market sentiment [1]. Analysts have set an average one-year price target of $40.36, indicating a potential upside of 25.57% from the current price of $32.14 [1]. However, GuruFocus estimates a GF Value of $15.95 for one year, suggesting a potential downside of -50.37% from the current price [1].

In the competitive landscape of AI hardware and software, GDS Holdings faces challenges. Nvidia's strategic pivot with tailored chips for China, such as the B30A and RTX6000D, is a response to regulatory pressures and the country's push for self-reliance in AI technologies [3]. Investors should monitor these developments and consider diversifying their portfolios to hedge against geopolitical volatility.

In conclusion, GDS Holdings' Q2 2025 earnings demonstrate a strong performance driven by digital data growth and high-performance data centers in China. However, investors should remain vigilant about regulatory risks and geopolitical uncertainties.

References:
[1] https://finance.yahoo.com/news/gds-holdings-ltd-hkse-09698-131552327.html
[2] https://www.scmp.com/economy/china-economy/article/3321880/china-no-2-global-computing-power-accelerates-build-out-ai-race-heats
[3] https://www.ainvest.com/news/nvidia-china-ai-gambit-navigating-regulatory-labyrinths-strategic-innovation-2508/