China-based GDS Holdings (GDS) is surging 6% after investment bank TD Cowen raised its price target on the shares. The company develops and operates data centers. TD Cowen's Call on GDS Stock The investment bank raised its price target on GDS to $39 from $27. It also kept a Buy rating on the name. TD Cowen increased its price target after conducting a detailed analysis of the shares' valuation in the wake of the company's third-quarter results. Carol Gauthier/Shutterstock.com Additionally, the investment bank expects GDS' Q4 financial results to come in slightly above analysts' average estimates, and TD Cowen predicts that the company's 2025 guidance could also beat analysts' mean outlook. The investment bank also noted that GDS had installed a record 25,600 square meters of space on a gross organic basis for Tier 1 companies in Q3. GDS is benefiting from demand triggered by the growth of AI, TD Cowen reported.  Finally, the company has been confident in its ability to meet its target of 60,000 square meters of net installations in 2024, the investment bank noted, adding that the firm has 431 megawatts of total bookings. The Recent Price Action of GDS Stock In the last month, the shares have jumped 32%, while they have climbed 22% in the last three months. While we acknowledge the potential of GDS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GDS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.