Core Insights - Vertiv has maintained its position as the market leader in precision cooling, UPS, and micro-module markets in China for several consecutive years, showcasing its superior product and system capabilities [2][11] - The company emphasizes its full-chain product strength and continuous evolution, providing tailored thermal management solutions for various scenarios in the era of intelligent computing [3][15] Full-Chain Thermal Management - Vertiv has developed a comprehensive "air-cooled + liquid-cooled" thermal management solution, effectively adapting to different scenarios with energy-efficient technologies such as hybrid cooling and intelligent control systems [5][13] - The company’s innovative technologies, including pre-cooling and supplementary cooling, contribute to achieving reliable PUE delivery [5] Full-Chain Power Management - Vertiv has ranked first in the UPS market for 17 consecutive years, offering a complete power management system that covers the entire supply chain from the grid to the chip [7][9] - The company’s power management solutions are designed to adapt to high-density scenarios in data centers and AI applications, ensuring reliable power supply [9] Micro-Module Market Leadership - Vertiv's micro-module market leadership is viewed as a starting point for further iterations, focusing on integrated solutions that combine cooling, power, and AI [11][13] - The deployment cycle for their solutions has been significantly reduced from 6-9 months to just 5 days, enhancing operational efficiency and lowering total cost of ownership (TCO) [13] AI and High-Density Computing - Vertiv's products, such as the SmartArray, support high-density computing environments, accommodating single cabinet densities of 45kW or more, which is essential for GPU clusters and large model training [15] - The company aims to redefine the foundational infrastructure for computing power in the AI era, reflecting its 60 years of technological quality [15] Company Overview - Vertiv, formerly Emerson Network Power, is a global leader in digital infrastructure solutions with over 50 years of experience, serving various sectors including telecommunications, data centers, and renewable energy [16] - The company operates three R&D centers and two manufacturing bases in China, providing high-quality products and professional services across more than 100 cities [16]

Company Performance - Vertiv Holdings Co. closed at $127.73, down 4.84% from the previous trading session, underperforming the S&P 500, which lost 0.64% [1] - The stock has decreased by 7.81% over the past month, while the Computer and Technology sector gained 2.91% and the S&P 500 gained 1.91% [1] Earnings Projections - The upcoming earnings report is expected to show earnings of $0.99 per share, reflecting a year-over-year growth of 30.26% [2] - The Zacks Consensus Estimate for revenue is projected at $2.57 billion, an increase of 24.13% from the previous year [2] - For the full year, analysts expect earnings of $3.82 per share and revenue of $9.97 billion, representing changes of +34.04% and +24.47% respectively from last year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates indicate a positive outlook for Vertiv Holdings Co., with a Zacks Rank of 2 (Buy) [4][6] - The Zacks Consensus EPS estimate has increased by 7.03% in the past month [6] Valuation Metrics - Vertiv Holdings Co. has a Forward P/E ratio of 35.11, which is a premium compared to the industry average of 16.87 [7] - The company has a PEG ratio of 1.18, compared to the Computers - IT Services industry average PEG ratio of 2.11 [8] Industry Context - The Computers - IT Services industry is ranked 158 out of over 250 industries, placing it in the bottom 37% [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Insights - Vertiv (VRT) is experiencing strong organic order growth, with a 15% year-over-year increase and 11% sequential growth in Q2 2025, surpassing $3 billion in orders for the first time [1][10] - The company's backlog reached $8.5 billion, reflecting a 21% year-over-year increase and a 7% sequential increase, supported by a book-to-bill ratio of 1.2x [2][10] - Regional performance is a significant growth driver, with the Americas showing mid-40% growth, APAC with mid-30% growth, and EMEA delivering high single-digit growth [2][10] Company Performance - The trailing 12-month organic orders growth is at 11%, indicating sustained momentum [2] - Vertiv's collaborations with industry leaders like CoreWeave and Oklo demonstrate its commitment to innovation in data center infrastructure [3] - Recent acquisition of Waylay NV enhances Vertiv's AI-driven monitoring and control capabilities for data centers [4] Competitive Landscape - Vertiv faces stiff competition from ABB and Eaton, both expanding their capabilities in the data center infrastructure market [5] - ABB reported double-digit order growth in Q2 2025, driven by demand across multiple regions [6] - Eaton's data center orders surged approximately 55% year-over-year, with a 50% increase in sales in Q2 2025 compared to the previous year [7] Stock Performance and Valuation - Vertiv's shares have gained 18.2% year-to-date, outperforming the broader Zacks Computer & Technology sector, which appreciated 13.4% [8] - The stock is trading at a premium with a trailing 12-month Price/Book ratio of 16.40X compared to the sector's 10.21X [11] - The consensus estimate for 2025 earnings is $3.82 per share, reflecting a 34.04% increase from 2024 [13]

Group 1: Broadcom (AVGO) - Broadcom has quickly entered the AI race with a broad portfolio of technologies, reflecting a strong commitment to next-generation AI infrastructure [2][6] - The company currently offers a dividend yield of 0.8% annually, with a five-year annualized dividend growth rate of 13.3% [2] - Broadcom's free cash flow reached $6.4 billion, showing a 44% year-over-year growth, marking a quarterly record [5] - AI revenue for Broadcom was $4.4 billion, representing a 46% year-over-year increase, with expectations of $5.1 billion in AI sales for the upcoming quarter [8] Group 2: Vertiv (VRT) - Vertiv provides services for data centers and communication networks, focusing on power, cooling, and IT infrastructure solutions [10] - The current Zacks Consensus EPS estimate for Vertiv is $3.82, indicating a 35% year-over-year growth and a 15% increase over the past year [11] - Vertiv's shares yield a modest 0.1% annually, but the company is positioned as a strong growth and yield play [13] Group 3: Investment Outlook - Both Broadcom and Vertiv are identified as dividend-paying tech stocks that, while not high-yield, offer significant potential due to their AI offerings [15] - The bullish outlook for AI revenue in both companies presents an attractive opportunity for income-focused investors [15]

Market Overview - The U.S. equity markets have experienced significant volatility, reaching record highs due to Federal Reserve Chair Jerome Powell's hints at rate cuts, but also declining sharply due to concerns over NVIDIA's upcoming earnings release [1] - President Trump's actions, including threats to remove Federal Reserve Governor Lisa Cook, have contributed to market uncertainty, potentially leading to a legal battle that could escalate to the Supreme Court [1] Momentum Investing Strategy - Investors are increasingly turning to momentum stocks, such as Vertiv Holdings Co (VRT), MasTec, Inc. (MTZ), and Robinhood Markets, Inc. (HOOD), as a strategy to achieve sustained profits when traditional value or growth investing does not yield desired results [2] - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends that are likely to continue due to existing momentum [3] Screening Parameters for Momentum Stocks - The strategy involves selecting the top 50 stocks with the best percentage price change over the last 52 weeks to identify those that have appreciated steadily [5] - From these, the 10 worst performers over the past week are chosen to identify stocks that have experienced a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) are included, as they have a proven history of outperformance [6] - A Momentum Style Score of B or better is required, indicating favorable timing for investment [7] - Stocks must have a current price greater than $5 and be among the top 3000 by market capitalization to ensure stability [8] Selected Stocks - Vertiv has seen a price increase of 60.2% over the past year but has declined by 7.9% in the last week, with a Momentum Score of B [9] - MasTec's stock has risen by 59.7% in the past year, with a slight decrease of 0.7% in the last week, also holding a Momentum Score of B [10] - Robinhood Markets has surged by 415% over the past year but has fallen by 6.2% in the last week, boasting a Momentum Score of A [11]

Core Insights - Vertiv Holdings Co has acquired Waylay NV to enhance its digital infrastructure solutions with AI-based monitoring and predictive services [1][2] - The acquisition aims to improve real-time monitoring, predictive maintenance, and dynamic optimization of power and thermal performance in data centers [2][3] - Waylay's technology will accelerate Vertiv's vision of intelligent infrastructure, enabling data-driven and optimized operations for demanding environments [3] Company Overview - Vertiv is a global leader in critical digital infrastructure, providing a comprehensive portfolio of power, cooling, and IT infrastructure solutions [5] - The company operates in over 130 countries and focuses on enabling vital applications to run continuously and perform optimally [5] Industry Context - The demand for intelligent, adaptive infrastructure is growing due to the increasing workloads driven by AI in data centers [2] - AI-based digital services are essential for supporting high-density computing environments, which are critical for generative AI applications [2]

Core Insights - Vertiv Holdings Co, a leader in critical digital infrastructure, is participating in two investor conferences in September 2025 [1][2] - The CEO Giordano Albertazzi and CFO David Fallon will engage in fireside chats at both conferences [1][2] Group 1: Upcoming Events - The first event is the Goldman Sachs Communacopia + Technology Conference on September 9, 2025, at 8:10 a.m. Pacific time [1] - The second event is Morgan Stanley's 13th Annual Laguna Conference on September 10, 2025, at 9:15 a.m. Pacific time [2] - Live webcasts and related presentation materials will be available on Vertiv's Investor Relations website [2] Group 2: Company Overview - Vertiv integrates hardware, software, analytics, and services to support critical applications for data centers and communication networks [3] - The company operates in over 130 countries, providing solutions for power, cooling, and IT infrastructure [3] - Vertiv's offerings are designed to address challenges in data centers and commercial facilities, enhancing operational performance [3]

Investment Rating - The report maintains a "Positive" investment rating for the communication equipment industry [15]. Core Insights - Major cloud vendors such as Google, Amazon, Microsoft, and Meta reported better-than-expected financial results, driven by strong demand for cloud services and advertising, with significant capital expenditure increases [4][7]. - AI applications are deeply penetrating various sectors, leading to accelerated investments in computing power and infrastructure [7][13]. - The overall trend indicates a robust growth trajectory for AI and computing power, with companies ramping up their capital expenditures to support this growth [13]. Summary by Sections Cloud Vendors: Strong Financial Performance and Demand - Google reported Q2 2025 revenues of $96.43 billion, up 13.8% year-on-year, with a net profit of $28.20 billion, up 19.4% [24][26]. - Amazon achieved Q2 2025 revenues of $167.70 billion, a 13.3% increase year-on-year, with a net profit of $18.16 billion, up 34.7% [34][36]. - Microsoft recorded Q4 FY25 revenues of $76.44 billion, an 18.1% increase year-on-year, with a net profit of $27.23 billion, up 23.6% [43][45]. - Meta's Q2 2025 revenues reached $47.52 billion, a 21.6% increase year-on-year, with a net profit of $18.34 billion, up 36.2% [51][54]. CPU/GPU: Product Iteration and Ecosystem Upgrade - AMD's Q2 2025 revenues were $7.69 billion, a 31.7% increase year-on-year, with a net profit of $0.87 billion, up 229.1% [60][62]. - The client and gaming segments saw record growth, while the data center business faced challenges due to export restrictions [62]. Switches: High-End Volume and Stable Profitability - Arista's revenue growth was driven by its AI Center strategy, with significant increases in AI network revenue [9]. - Celestica's communication market growth was primarily driven by high-performance switches, with revenue and performance outlooks adjusted upwards [9]. Optical Communication & Fiber Optics: Strong Shipments and Scale-Up Acceleration - Lumentum's optical module shipments surged, and coherent optical communication business saw rapid growth [10]. - Corning's optical communication business thrived, driven by enterprise networks, with expectations for significant future growth from scale-up scenarios [10]. Cables: Strong Orders and Active Capacity Expansion - Amphenol reported strong AI-related orders and exceeded expectations in IT data communication business growth [11]. Cooling: High Demand and Accelerated Liquid Cooling Adoption - Vertiv's revenue and profits saw significant growth, with a strong order backlog and upward guidance for the year [12]. Investment Recommendations: Accelerating Business Flywheel and Computing Power - The report recommends several companies across different segments, including optical modules, liquid cooling, fiber optics, and AI applications, highlighting their potential for growth [13].

We are back on halftime with final trading. Steve Weiss, you're up first. >> I bought some verdives.Stocks down over 20% since they reported a great quarter. Data center craze isn't dying anytime soon. >> Kevin Simpson, >> DraftKings football season kicks off this week in Philadelphia.Go Birds. >> Jason Snip, >> Palo Alto. I really like this cyber arc acquisition.I think we'll be a creative to the name. >> Jim Labenthal with the final word. >> Cityroup.And as the old commercial goes, and I'll only do this o ...

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Vertiv Holdings Co. (VRT) - Vertiv is a global provider of critical digital infrastructure and services, serving industries such as cloud computing, healthcare, and energy [11] - VRT holds a 2 (Buy) Zacks Rank and a VGM Score of B, indicating strong potential [11] - The company is projected to have a year-over-year earnings growth of 34% for the current fiscal year, with upward revisions in earnings estimates [12] - VRT has an average earnings surprise of +10.7%, making it a strong candidate for growth investors [12]