GDS Holdings Limited (NASDAQ:GDS) is one of the 10 Best Stocks to Buy According to Billionaire Rob Citrone.

GDS Holdings Limited (NASDAQ:GDS) has had a stop-start relationship with Discovery Capital Management. The stock first appeared in the 13F portfolio of the fund back in the first quarter of 2019. This stake comprised just under 500,000 shares. In the next quarter, this position was sold off completely. A new position was opened in the third quarter of the same year but was sold off as well by the beginning of next year. A small stake, comprising under 100,000 shares, was bought and sold off in the 2021. The present position, bought in the third quarter of 2025, comprised over 1 million shares, and was increased to 1.43 million shares in the fourth quarter of 2025, representing an increase of 36%.

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GDS Holdings Limited (NASDAQ:GDS) has emerged as one of the most prominent China-based stocks in the US market in recent years. Even though Chinese stocks have faced macro headwinds amid a tariff war, hedge funds are bullish on the ability of GDS to emerge from these unscathed. One of the reasons for this sentiment is the launch of the China Real Estate Investment Trust by GDS in late 2025. Before the REIT launch, GDS traded at a depressed multiple of around 12x EBITDA. The C-REIT assets were valued at around 22x 2026 EBITDA, significantly higher than market expectations. The launch also allows GDS to monetize data center assets at premium valuations and reinvest capital into high-growth AI infrastructure.

While we acknowledge the potential of GDS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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