The company's earnings outlook has moved higher across all timeframes, with VRT expected to post nearly 40% year-over-year earnings growth in its current year. Vertiv has continued to capitalize on the AI frenzy, exiting its latest quarter with its highest backlog in company history totaling $6.3 billion. Shares currently yield a modest 0.1% annually, below the average of the Zacks Computer and Technology sector average. The company provided rosy guidance for its current fiscal year, upping its net sales gu ...

Most investors may not have heard of Vertiv, but it contributes significantly to the AI process. Companies like Alphabet, Microsoft, and Nvidia soak up a lot of attention in the artificial intelligence (AI) race -- the first two because they invest in public-facing products, like ChatGPT (Microsoft) and the generative AI chatbot Gemini (Alphabet). And in the case of Nvidia, that's due to its indispensable chips and the stock's incredible performance. But don't forget about what is behind the curtain. A numb ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of $130.03 [23][33]. Core Insights - The company is positioned to benefit significantly from the AI trend and the dual carbon strategy, which is driving upgrades in data center power management and thermal management products. Approximately 75% of the company's revenue in 2023 is derived from data centers, with around 30% from thermal management products [33][101]. - The global data center infrastructure market is projected to grow at a CAGR of 9-12% from 2023 to 2028, with AI-related infrastructure expected to grow at a higher CAGR of 14-17% [114]. - The company has a strong order backlog, reaching $6.3 billion as of Q1 2024, up from $4.8 billion in Q1 2023, indicating robust demand for its products [133][146]. Summary by Sections Section 1: AI Era and Liquid Cooling - The rise of AI applications is increasing the power density in data centers, necessitating advanced cooling solutions. Liquid cooling technology is expected to see significant adoption as AI servers require higher cooling capabilities compared to traditional servers [26][80]. - The company collaborates with NVIDIA to develop liquid cooling systems, which are anticipated to gain market share as the new GB200 NVL systems are released [90][93]. Section 2: Comprehensive Power Products and Stable Service Growth - The company’s power management products are crucial as electrical systems account for 40-45% of data center infrastructure costs. The demand for power products is expected to rise due to increasing AI workloads [105][127]. - Service revenue has shown steady growth, reaching $1.592 billion in 2023, with a year-on-year increase of 7.52% [147]. Section 3: Financial Projections and Valuation - The company forecasts net profits of $633 million, $993 million, and $1.167 billion for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 64, 41, and 35 [33][114]. - The target price of $130.03 is based on a comparison with peer companies, which have an average P/E of 50 for 2025 [33][114].

UKRAINE - 2021/08/23: In this photo illustration, Vertiv Holdings Co logo is seen displayed on a ... [+] smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images If you are looking to cash in on the boom in generative AI, you can buy shares of Nvidia before the stock splits next month, as I wrote recently in a Forbes post. But Nvidia faces powerful rivals and the company's stock price is at risk each quarter unless th ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Vertiv (VRT) recently launched the Vertiv AI Hub platform. As artificial intelligence (AI) applications expand rapidly, data centers face a knowledge gap in managing this growth. With the launch of the AI Hub platform, Vertiv is trying to address this need. Vertiv AI Hub platform offers expert information, reference designs and resources to help partners and customers develop AI-ready infrastructure. It also provides access to white papers, industry research and essential tools, focusing on power and coolin ...

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this company a great growth pick right now. Earnings Growth Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most in ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell- side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about Vertiv Holdings Co. (VRT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Vertiv currently has an avera ...

Erik Isakson Investment thesis Vertiv (NYSE:VRT) is one of the hottest stocks in the U.S. market right now, and its growth was mainly fueled by an AI and data centers mania. When I first saw that the stock rallied by 524% over the last twelve months, I thought that the stock was overhyped. However, when I delved into the company's financial and business analysis, I understood that the massive rally was well-deserved. Moreover, my valuation analysis suggests that the stock is still substantially underval ...

USA News Group Commentary Issued on behalf of Avant Technologies Inc. VANCOUVER, BC, May 7, 2024 /PRNewswire/ -- USA News Group – The rise of generative AI is currently adding considerable potential for accelerating economic growth across a wide array of sectors. In order to fully realize this potential, analysts at ING are highlighting how crucial investment in data and digital infrastructure will be moving forward. Citing estimates from Dell'Oro and Bank of America, ING has pointed out that investments fr ...