Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Greater China Technology Hardware, specifically in the context of AI Data Centers [1][3] - **Market Outlook**: The industry view is rated as "In-Line" by Morgan Stanley, indicating expected performance in line with the broader market [3][61] Core Insights - **Data Center Infrastructure Growth**: The Data Center Power and Cooling Infrastructure is projected to grow at a CAGR of 30% from 2026 to 2030 [6][8] - **Comparative Analysis of Companies**: - **Delta Electronics vs. Vertiv**: - Delta's market cap is approximately $75.461 billion, with a projected revenue of $16.341 billion for 2025, and a revenue CAGR of 23% from 2024 to 2027 [11] - Vertiv's market cap is around $53.374 billion, with a projected revenue of $10.024 billion for 2025, and a revenue CAGR of 19% from 2024 to 2027 [11] - Delta has a 40% exposure to data centers, while Vertiv has an 80% exposure [11] - Delta's operating margin is estimated at 14%, compared to Vertiv's 20% [11] - Delta's net profit for 2025 is projected at $1.709 billion, with a net profit CAGR of 40% from 2024 to 2027 [11] - Delta's return on equity (ROE) is estimated at 18%, while Vertiv's is significantly higher at 40% [11] Additional Insights - **Revenue Contribution from Services**: Vertiv differentiates itself with over 20% of its revenue coming from services, while Delta has a more diverse end-market exposure [14][12] - **Geographic Exposure**: Delta has a more balanced geographic exposure compared to Vertiv, which is heavily weighted towards the Americas [19][12] - **Dell's AI Contribution**: Dell's AI server contribution to Compal is estimated to be between 1-1.5% of its EPS for 2026, indicating a modest impact [30] Industry Drivers - **Semiconductor Production Equipment**: - Collaboration between Lam Research and JSR on EUVL resists is expected to impact the market significantly, with potential market shrinkage of over ¥30 billion in 2026 for coater/developer equipment [28] - **Investment Themes**: Advanced packaging, high bandwidth memory, and other emerging technologies are highlighted as key investment themes in the semiconductor space [27] Conclusion - The Greater China Technology Hardware sector, particularly in AI Data Centers, shows promising growth potential, with significant opportunities in power and cooling infrastructure. Companies like Delta and Vertiv are positioned differently within the market, with varying exposure and growth trajectories. The semiconductor production equipment sector is also evolving with new collaborations that could reshape market dynamics.

Core Viewpoint - Micron Technology has emerged as a significant player in the AI infrastructure boom, benefiting from the increasing demand for high-performance memory and storage solutions for AI applications [1][10]. Group 1: Market Position and Demand - The demand for advanced memory solutions is surging due to the rapid expansion of data centers, with major projects transforming regions into AI compute hubs [5][10]. - Micron is now recognized as a key beneficiary of the AI infrastructure trend, alongside established leaders like Nvidia and Vertiv [6][10]. Group 2: Financial Performance and Analyst Sentiment - Analysts have revised Micron's earnings estimates significantly higher, with current year estimates up 35% and next year's projections climbing 26% [7]. - The stock has achieved a Zacks Rank 1 (Strong Buy), reflecting strong analyst confidence and positive earnings revisions [2][7]. Group 3: Technical Analysis - Micron shares are currently consolidating in a bull flag pattern, indicating a potential for a breakout and further price appreciation [3][8]. - A key resistance level is identified at $166; a decisive move above this threshold could lead to new record highs [9]. Group 4: Future Outlook - As AI adoption increases and infrastructure spending reaches unprecedented levels, Micron is well-positioned for substantial growth [12]. - The combination of strong fundamentals and a favorable technical setup suggests that Micron may be gearing up for another significant rally [11].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score identifies undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines the three Style Scores to identify stocks with attractive value, growth forecasts, and promising momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] Stock Highlight: Vertiv Holdings Co. (VRT) - Vertiv is a global provider of critical digital infrastructure and services for various essential industries, including cloud computing and healthcare [11] - VRT holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential [11] - The stock has a Momentum Style Score of B, with shares increasing by 8.7% over the past four weeks, and earnings estimates for fiscal 2025 have been revised upward [12]

Company Overview - Vertiv Holdings Co (NYSE:VRT) provides critical digital infrastructure and continuity solutions, serving data centers, communication networks, and commercial and industrial environments globally [1] - Vertiv competes with Eaton Corporation (ETN) in the power management industry and both companies are gaining attention for their roles in the growing AI sector [1] Financial Performance - Goldman Sachs set a price target of $159 for VRT, indicating a potential increase of about 14.7% from its current stock price of $138.62 [2][6] - Vertiv's earnings per share (EPS) surged by 77% and sales grew by 26%, reflecting strong demand for its products [2][6] - The current stock price of $138.62 reflects a slight decrease of 0.82% or $1.15, with fluctuations between $137.08 and $140.98 on the day [3] Market Position - Vertiv's market capitalization remains robust at approximately $52.93 billion [3] - The company recently raised its full-year 2025 sales guidance, underscoring confidence in continued growth, particularly in the AI sector [4][6] - With a trading volume of 3,174,293 shares on the NYSE, Vertiv remains an active player in the market [5]

Company Background - Vertiv is one of the largest providers of liquid cooling and power management solutions globally, positioned as a rare asset in the AI infrastructure sector [2] - The company generates approximately 80% of its revenue from data center operations, significantly higher than its peers, allowing it to benefit maximally from the AI computing power construction wave [3][12] Liquid Cooling as a Necessity - The AI computing revolution is rapidly increasing chip power consumption, making liquid cooling technology a core driver of this transition from an optional to a mandatory solution [10] - For instance, NVIDIA's Blackwell platform has a single chip power consumption of 1.4kW, with cabinet power reaching 140kW, surpassing traditional air cooling limits [11] - By 2025, the liquid cooling sector is expected to experience a breakthrough, driven by AI demand, positioning Vertiv as a key beneficiary in this field [10] Core Business and AI Strategy - Vertiv's business structure is highly focused, with three main segments: data centers, communication networks, and commercial & industrial, where data center operations are the core, contributing 80% of revenue [11][12] - The company has established a robust product and service matrix, including power management, thermal management, and infrastructure services [12] Financial Performance - Vertiv has experienced rapid revenue and profit growth over the past three years, with a significant profitability surge expected in 2023 and further acceleration in 2025 due to AI demand [25] - Revenue is projected to grow from $6.86 billion in 2023 to approximately $10 billion in 2025, with a growth rate of around 25% expected in 2025 [26] - Adjusted EPS is anticipated to rise from $1.77 in 2023 to $3.82 in 2025, indicating strong operational leverage and profit elasticity [27] Competitive Landscape - Vertiv, Schneider Electric, and Eaton are the three giants in the data center infrastructure sector, each with distinct core strategies and market positions [31] - Vertiv's revenue from data center operations is 80%, compared to 21% for Schneider and 18% for Eaton, highlighting its focused business model [32][33] - The company holds a competitive edge in liquid cooling technology and high-voltage direct current (HVDC) solutions, positioning it favorably for the next generation of data centers [34]

Core Insights - Dividends are often overlooked in technology stocks, but companies like Eaton and Vertiv are providing dividend payments while also having AI exposure [1] Group 1: Vertiv - Vertiv exceeded consensus EPS and sales expectations, with EPS increasing by 77% and sales rising by 26% [2] - The company raised its full-year 2025 sales guidance, projecting approximately 16% year-over-year growth, driven by AI adoption [3] - Vertiv's shares yield a modest 0.1% annually, with two increases in the payout over the last five years [3] Group 2: Eaton - Eaton is a power management company benefiting from the AI boom, particularly in the data center market [4] - The company reported record-breaking Q2 results with adjusted EPS of $2.95, an 8% increase year-over-year, and organic sales growth of 8% [5] - Eaton has a five-year annualized dividend growth rate of 7.5%, with a current yield of 1.1% and a history of paying dividends since 1923 [10] Group 3: Investment Perspective - Both Eaton and Vertiv, while not high-yield stocks, present bullish outlooks that may attract income-focused investors [11]

Group 1 - Vertiv (VRT) stock is highlighted as a significant pick in the Big Cap 20, approaching a cup-base buy point, indicating potential for upward movement [1] - The company has a strong fundamental track record, making it a noteworthy candidate as the demand for AI data centers continues to grow [1] - Recent developments include a drop in Vertiv's stock following Microsoft's announcement of a breakthrough technology for cooling AI chips in data centers, which may impact Vertiv's market position [2] Group 2 - The overall market is influenced by various sectors, including gold, aerospace, and AI stocks like Nvidia, which continue to lead the market rally [4] - The buildout of AI data centers is driving growth for companies like Vertiv and Applied Digital, indicating a robust demand in this sector [4] - The stock market is experiencing fluctuations, with Dow Jones futures reacting to Fed comments and inflation data, while companies like Meta and Microsoft are seeing gains due to strong earnings [4]

Todd, we kind of know the EI eco AI ecosystem at this point right now. What exactly is undiscovered in your mind that you think needs to be paid more attention to. >> Well, I don't I don't know if it's undiscovered, Dom, and good morning.Um, Vertive Holdings is uh the name I want to focus on. It's only up 25%. I'm laughing what you just said about Intel up, you know, uh, 19% for the year.uh Vertive was up significantly almost 200% in 2024 has gone quiet relatively speaking in 2025 looking to break higher. S ...

Company Overview - Vertive Holdings is a critical power and cooling infrastructure company that supports AI data centers by maintaining optimal operating conditions [2][3] - The company has seen significant stock performance, with an increase of almost 200% in 2024, although it has been relatively quiet in 2025 [2] Market Position - Vertive is part of Nvidia's partner network, collaborating on customized liquid cooling and power designs for high-performance GPUs [3] - Competitors include Eaton and Emerson, but they lack the tailored solutions that Vertive provides in partnership with Nvidia [3] Technical Analysis - The stock has formed a technical head and shoulders inverse pattern, indicating potential for upward movement if it breaks above $157 [4] - The company has a strong earnings track record, beating earnings estimates 14 out of 17 times, and is currently valued at approximately 30-32 times forward earnings [4] Investment Strategy - The recommendation is to increase exposure to Vertive in growth portfolios, reflecting confidence in its potential for further gains [4] - The current market environment favors holding high-quality, high-growth stocks rather than frequent trading, especially in the context of the ongoing AI boom [6][7] Broader Market Trends - There is a noted value rotation in the market, with a focus on foundational elements like mining and rare earth minerals, rather than just software and GPUs [9] - The outlook remains positive for high-growth AI stocks, with anticipation for Nvidia's stock to reach $200 [9]

Core Insights - Vertiv (VRT) is experiencing growth due to a rapidly expanding client base, driven by strong demand for data center infrastructure and AI-related solutions [1] - Collaborations with CoreWeave and Oklo have strengthened Vertiv's technology leadership, positioning the company for long-term growth in the evolving data center market [1] Financial Performance - In the trailing 12 months, organic orders grew approximately 11%, with a book-to-bill ratio of 1.2 times for Q2 2025, indicating strong prospects [2] - Backlog increased by 7% sequentially and 21% year over year to $8.5 billion [2] - Vertiv achieved over $3 billion in orders in Q2 2025, reflecting strong demand and growing customer trust [2] Strategic Partnerships - The demand for efficient energy use in data centers is rising, making Vertiv's role increasingly vital, with innovation and strategic partnerships as key catalysts [3] - In July 2025, Vertiv announced a collaboration with Oklo to co-develop advanced power and thermal management solutions for data centers powered by Oklo's advanced nuclear power plants [3] - Vertiv's partnership with NVIDIA aims to provide efficient and scalable power solutions for next-generation AI data centers, aligning with NVIDIA's AI roadmap [4] Competitive Landscape - Vertiv's AI infrastructure solutions face increasing competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both expanding their capabilities for AI data center deployments [5] - Super Micro announced that Lambda deployed its GPU-optimized servers with NVIDIA Blackwell systems to enhance AI infrastructure [6] - Hewlett-Packard Enterprise extended its partnership with NVIDIA to build enterprise computing solutions for faster adoption of generative AI applications [7] Stock Performance and Valuation - Vertiv's shares have gained 25.5% year to date, outperforming the broader Zacks Computer & Technology sector, which appreciated 23.6% [8] - Vertiv's stock is trading at a premium, with a trailing 12-month Price/Book ratio of 17.42X compared to the sector's 11.35X [11] - The consensus estimate for 2025 earnings is $3.82 per share, indicating a 34.04% increase from the reported figure of 2024 [13]