Citi raised the firm’s price target on VNET Group (VNET) to $16.10 from $4 and keeps a Buy rating on the shares, which the analyst also added to the firm’s Focus List. The firm’s checks with industry players indicate rising AI and datacenter-related capital expenditures from China’s domestic communication service providers, says the analyst, who sees the “early stages of a domestic AI capex up-cycle/race.” VNET should be “a key beneficiary” of China’s domestic AI demand thanks to strong landbank resources, the analyst tells investors.