GDS Holdings Soars 9.32% on Explosive Intraday Surge—What’s Fueling the Momentum?

Summary
• GDS Holdings (GDS) gaps up 9.32% to $41.14, hitting an intraday high of $43.94
• Company announces successful C-REIT IPO on Shanghai Stock Exchange
• Q2 2025 results show revenue growth and strategic international expansion

GDS Holdings (NASDAQ: GDS) is surging on a historic intraday rally, driven by a combination of strategic milestones and sector tailwinds. The stock’s 9.32% jump to $41.14 reflects optimism around its C-REIT listing and Q2 earnings, which highlighted robust demand for data center infrastructure. With the broader AI-driven infrastructure boom in play, investors are scrambling to position for the next phase of growth.

C-REIT Listing and Q2 Earnings Fuel GDS’s Intraday Surge
GDS’s explosive move stems from two pivotal catalysts: the successful completion of its China REIT (C-REIT) IPO on the Shanghai Stock Exchange and Q2 2025 earnings that underscored its strategic momentum. The C-REIT listing, a first-of-its-kind monetization of data center assets in China, unlocked liquidity and signaled institutional confidence in GDS’s long-term value. Meanwhile, Q2 results revealed a 12% year-over-year revenue increase and 1.4x growth in international operations under DayOne, driven by new customer wins and rising utilization rates. Analysts like Bank of America and RBC have upgraded the stock, citing conservative guidance and durable growth tailwinds from AI infrastructure demand.

Data Center REITs Rally Amid AI Demand, But GDS Outpaces Sector
While the broader data center REIT sector has benefited from AI-driven infrastructure spending, GDS’s performance has far outpaced peers. Digital Realty Trust (DLR), the sector leader, fell 1.39% on the day, highlighting divergent momentum. GDS’s unique value proposition—combining domestic Chinese demand with rapid international expansion—has positioned it as a standout. The C-REIT structure further differentiates GDS, offering a scalable model for asset monetization that competitors have yet to replicate. As global hyperscalers and enterprises prioritize low-latency, high-capacity data centers, GDS’s dual focus on China and international markets creates a moat against sector-wide volatility.

Options Playbook: Leveraging GDS’s Volatility with Gamma-Driven Contracts
• 200-day MA: $29.26 (well below current price)
• RSI: 60.20 (neutral to overbought)
• MACD: 1.34 (bullish divergence)
• Bollinger Bands: Price at $41.14, above upper band of $41.05

GDS’s technicals suggest a continuation of its upward trajectory, supported by strong gamma and implied volatility in the options market. Key levels to watch include the 52-week high of $52.50 and the 200-day MA as a potential support. For leveraged exposure, the GDS20251017C40 and GDS20251017C41 contracts stand out.

• GDS20251017C40 (Call, $40 strike, 10/17 expiry):
- IV: 98.91% (high)
- Delta: 0.594 (moderate sensitivity)
- Theta: -0.1179 (rapid time decay)
- Gamma: 0.0373 (high sensitivity to price moves)
- Turnover: $1.24M (liquid)
- Leverage: 8.77% (moderate)
This contract offers a balance of leverage and liquidity, ideal for capitalizing on a breakout above $40. A 5% upside to $43.19 would yield a payoff of $3.19 per contract, with gamma amplifying gains as the stock rises.

• GDS20251017C41 (Call, $41 strike, 10/17 expiry):
- IV: 101.15% (high)
- Delta: 0.557 (moderate sensitivity)
- Theta: -0.1194 (rapid time decay)
- Gamma: 0.0371 (high sensitivity)
- Turnover: $620K (liquid)
- Leverage: 9.54% (moderate)
This contract is optimal for a mid-term hold, with a 5% upside scenario projecting a $43.19 payoff. The high gamma ensures amplified returns if GDS breaks above $41. Aggressive bulls should consider GDS20251017C40 into a bounce above $40.50.

Backtest GDS Holdings Stock Performance
Below is an interactive back-test report that examines how GDS performs after any daily price jump of ≥ 9 %, holding the position for up to 5 trading days.Open the module above to explore the full statistics and equity curve. Notes on assumptions:1. “9 % intraday surge” is approximated by a ≥ 9 % gain in the daily close versus the previous close. 2. Positions are closed automatically after 5 trading days; no additional stop-loss or take-profit rules are applied.

GDS’s Momentum Unlikely to Slow—Position for the Next Leg
GDS’s intraday surge is underpinned by structural growth drivers: AI infrastructure demand, international expansion, and a novel C-REIT model. With RSI hovering near overbought territory and MACD divergence favoring the bulls, the stock is primed for a test of its 52-week high. Investors should monitor the 200-day MA ($29.26) as a critical support level and watch for follow-through volume. Meanwhile, sector leader Digital Realty Trust (DLR), down 1.39%, highlights the importance of differentiation in a competitive space. For those seeking leveraged exposure, the GDS20251017C40 and GDS20251017C41 contracts offer a high-gamma, high-liquidity path to capitalize on the next phase of this AI-driven rally.