Why Discovery Capital’s Big Move Puts VNET Back on Investors’ Radar

Discovery Capital Management has sharply increased its position in VNET Group (VNET), coinciding with the company’s record 404 MW of data center capacity delivered in 2025 and a 47% jump in wholesale revenue.

VNET’s share price has been choppy, with a 1-day share price return of 2.38% and a 30-day share price return showing a 17.80% decline. The 3-year total shareholder return is very large, which points to momentum that has been built over a longer horizon.

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With VNET’s shares down 17.80% over 30 days but a very large 3-year total return, alongside revenue growth of 13.52% and net income growth of 48.77%, you have to ask: is there real value left here, or has the market already priced in future growth?

Most Popular Narrative: 42.4% Undervalued

VNET Group’s most followed narrative pegs fair value at $14.92 per share versus a last close of $8.59, putting a spotlight on what drives that gap.

Strong, sustained growth in wholesale data center capacity utilization and demand, especially for AI-driven workloads in regions like Greater Beijing and Yangtze River Delta, positions VNET to benefit from the accelerating digitalization and increased AI/cloud adoption across China, directly supporting higher future revenues and occupancy rates.

Read the complete narrative. Read the complete narrative.

To understand what sits behind that valuation gap, investors can look at the revenue projections, margin shifts, and a richer profit profile that all feed into this model. The crucial details are the assumed duration of growth, the extent of margin improvement, and the type of earnings multiple investors might be willing to pay in the future.

Result: Fair Value of $14.92 (UNDERVALUED)

However, you still need to weigh VNET’s high leverage and refinancing deadlines, along with the risk that heavy data center spending may encounter softer than expected AI demand.

Next Steps

All of this paints a mixed picture, with both risks and rewards in play. It makes sense to review the data yourself and move quickly to a view you trust, starting with the 2 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.