VNET Group, Inc. (NASDAQ:VNET), a Chinese carrier-neutral internet data center services provider, witnessed a 5.11% surge in its stock price during the intraday trading session on Friday. This upward movement appears to be driven by the renewed investor interest in mid-cap and small-cap companies, particularly those aligning their strategies with the growing demand for AI infrastructure.

The market has shown a favorable shift towards smaller firms in the $1 billion to $5 billion market capitalization range this year. These stocks, which had underwhelmed in recent years, are now attracting attention due to their attractive valuations relative to large-cap counterparts, as well as their strong fundamentals in fast-growing industries.

In the case of VNET Group, the company has successfully positioned itself to capitalize on the surging demand for AI-related infrastructure. Its Q3 2024 results demonstrated an impressive 86.4% year-over-year increase in wholesale data center revenues and a net profit of RMB 317.6 million. Additionally, the company secured multiple wholesale orders and expanded its power resources for data centers, further bolstering its AI capabilities.