NEW YORK, May 27, 2025 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Vertiv Holdings Co (NYSE: VRT) on behalf of the company's shareholders. The investigation seeks to determine whether Vertiv Holdings Co's directors breached their fiduciary duties in connection with recent corporate actions.If you are a shareholder of Vertiv Holdings Co and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/vertiv-holdings-c ...

Investment Rating - The report maintains an "Overweight" rating for the telecommunications sector [10] Core Insights - The combined capital expenditure of BAT (Baidu, Alibaba, Tencent) for Q1 2025 reached 54.4 billion RMB, representing a year-on-year increase of 105% but a quarter-on-quarter decline of 23% [2][3][15] - The decline in capital expenditure is attributed to the impact of NVIDIA's H20 export restrictions, but the long-term growth trend in capital expenditure is expected to remain intact [2][3][17] - The report suggests focusing on domestic GPU capabilities and related supply chains, including optical modules, AIDC, switches, and copper connections, as they are likely to fill the demand gap created by the restrictions [2][3][17] Summary by Sections Market Overview - The telecommunications index fell by 2.31% last week, while the Shanghai Composite Index and Shenzhen Component Index decreased by 0.57% and 0.46%, respectively [2][14] Key Companies and Dynamics - The report highlights a positive outlook for the AI computing chain in the telecommunications industry for 2025, recommending companies such as Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Taicheng Light, and Ruijie Network [4] - Core asset value reassessment is recommended for China Mobile, China Telecom, and China Unicom, along with a focus on new productivity in satellite internet, low-altitude economy, and deep-sea technology [4] Capital Expenditure Insights - In Q1 2025, Baidu, Alibaba, and Tencent's capital expenditures were 2.9 billion, 24 billion, and 27.5 billion RMB, respectively, with year-on-year growth rates of +42%, +136%, and +91% [3][15] - The report notes that the capital expenditure for Q1 is typically lower than that of Q4 in previous years, indicating a seasonal trend [17] Recommendations - The report recommends a focus on companies involved in the domestic GPU supply chain and related industries due to the anticipated growth in AI applications and infrastructure investments [2][3][17]

Company Insights - Vertiv announced a strategic alignment with Nvidia for AI data centers, focusing on the deployment of 800 VDC power architectures, with a comprehensive portfolio expected in the second half of 2026 [1] - Medical Properties Trust reported a quarterly FFO of 14 cents per share, missing the analyst consensus estimate of 15 cents, and quarterly sales of $223.80 million, which also fell short of the $229.81 million estimate [2] - Nucor Corporation reported better-than-expected earnings for the first quarter, with earnings of 77 cents per share, surpassing the consensus estimate of 64 cents, and quarterly sales of $7.83 billion, exceeding the $7.23 billion estimate [3] Stock Performance - Vertiv shares increased by 0.6% to settle at $104.20 [5] - Medical Properties Trust shares decreased by 1.3% to close at $4.56 [5] - Nucor shares fell by 0.9% to settle at $110.69 [5]

Core Insights - Vertiv confirms strategic alignment with NVIDIA's AI roadmap, planning to deploy 800 VDC power architectures for next-generation AI-centric data centers by the second half of 2026, ahead of NVIDIA's platform rollouts [1][2] Group 1: Product Development - Vertiv's upcoming 800 VDC power portfolio will include centralized rectifiers, high-efficiency DC busways, rack-level DC-DC converters, and DC-compatible backup systems, enhancing its existing power management solutions [3] - The 800 VDC solutions are designed to meet the increasing rack power requirements in AI environments, which are scaling beyond 300 kilowatts, by reducing copper usage, current, and thermal losses [3] Group 2: Strategic Positioning - Vertiv's experience in DC power spans over two decades, with a history of ±400 VDC deployments, establishing the company as a leader in higher-voltage DC architectures [4] - The 800 VDC portfolio is a key component of Vertiv's "unit of compute" strategy, designed for homogeneous AI zones in hyperscale environments, allowing all infrastructure components to operate as a modular and scalable system [5] Group 3: Market Differentiation - Vertiv's support for both AC and DC architectures serves as a strategic differentiator in the evolving AI data center landscape, enabling customers to align their power and cooling infrastructure with NVIDIA's next-generation compute platforms [2][5]

Core Insights - Vertiv Holdings (VRT) and TE Connectivity (TEL) are significant players in the AI infrastructure sector, providing essential components for data centers [1] - AI infrastructure spending is projected to exceed $200 billion by 2028, presenting substantial investment opportunities for both companies [2] Vertiv Holdings (VRT) - Vertiv's product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions, with organic orders growing approximately 20% in the last 12 months [3] - The company reported a book-to-bill ratio of 1.4 for Q1 2025, indicating strong demand, and a backlog growth of 10% sequentially and 25% year over year, reaching $7.9 billion [3] - Vertiv introduced the CoolLoop Trim Cooler, which offers up to 70% energy savings and 40% space reduction, enhancing cooling solutions for AI applications [4] - The company launched four new systems aimed at improving power efficiency and thermal management in AI-driven data centers [5] - Vertiv's partnerships with companies like NVIDIA and Intel are crucial for its growth [6] TE Connectivity (TEL) - TEL is experiencing growth due to increasing demand for connectivity solutions in AI, automotive electrification, and industrial automation, with orders reaching $4.25 billion, a 6% increase year over year [7] - The company anticipates revenue growth exceeding $700 million in fiscal 2025, driven by strong momentum in AI applications [8] - TEL's digital data networks business saw nearly 80% organic growth in Q2 2025, fueled by demand from hyperscale AI platforms [9] Price Performance and Valuation - Year to date, Vertiv's shares have decreased by 7.1%, while TE Connectivity's shares have increased by 13.6% [10] - Vertiv shares are currently overvalued with a Value Score of D, trading at a forward Price/Sales ratio of 4.02X, compared to TEL's 2.80X and a Value Score of B [14] - Earnings estimates for Vertiv in 2025 are $3.55 per share, reflecting a 24.56% year-over-year increase, while TEL's estimates are $8.19 per share, indicating an 8.33% increase year over year [16] Conclusion - TE Connectivity is positioned as the stronger investment option due to robust growth in AI applications, solid earnings estimates, and attractive valuation compared to Vertiv [17]

Vertiv (VRT) 2025 Conference Summary Industry Overview - The discussion primarily revolves around the **data center cooling industry**, specifically focusing on **liquid cooling** and **thermal management** solutions. Key Points and Arguments Liquid Cooling Market - Vertiv holds a **20-25% market share** in air cooling and aims to maintain or exceed this share in the liquid cooling segment despite increased competition from new entrants like CoolIT, Nidec, and Schneider [4][5][6] - The company anticipates **consolidation** in the liquid cooling market, similar to historical trends in the data center space, and believes its **innovation, technology, and service capabilities** will provide a competitive edge [6][6] - Vertiv projects that liquid cooling will represent about **one-third of the total cooling market** for data centers in the medium to long term, indicating a significant growth trajectory [19][19] Partnership with NVIDIA - The partnership with NVIDIA is viewed as a **mutual benefit**, enhancing Vertiv's position in the digital critical infrastructure market rather than a competitive barrier [10][12] - The collaboration is expected to facilitate the development of integrated power and cooling solutions, which are increasingly demanded as **IT densification** rises [14][15] Growth and Capacity Expansion - Vertiv's cooling capacity grew by **45% in 2024**, with plans for continued expansion in 2025 to meet regional demands [18][18] - The company is focusing on **geographical expansion** and ensuring sufficient capacity to accommodate industry growth dynamics [18][18] Integrated Solutions - The company emphasizes the importance of **integrated solutions** in addressing the complexities of modern data centers, which require a holistic approach to power and cooling [15][16] - Vertiv is enhancing its **infrastructure solutions** to optimize customer offerings and streamline delivery processes [16][17] Prefabricated Components - Prefabricated components are a growing segment, with liquid cooling and prefabrication driving significant growth acceleration [24][26] - While currently a small portion of revenue, the potential for prefabrication to expand is recognized as part of the broader long-term strategy [24][26] Service Revenue Growth - Vertiv is expanding its service offerings beyond traditional UPS services to include **liquid cooling services**, which are critical for the performance of high-density data center equipment [27][30] - The company sees **project services** as a competitive advantage, supporting medium to large projects throughout the installation and commissioning process [33][33] Supply Chain Resilience - The company has been working on enhancing the **resilience of its supply chain** post-COVID, adjusting manufacturing footprints and supplier relationships in response to global trade dynamics [57][58] - Vertiv is focused on regional manufacturing to mitigate risks associated with tariffs and supply chain disruptions [58][58] Market Dynamics and Customer Engagement - Conversations with traditional colocation companies focus on **capacity planning** and infrastructure design for future needs, highlighting Vertiv's role as an industry thought leader [61][62] - The company maintains a broad customer base, with no significant increase in customer concentration despite the rise of hyperscalers [63][63] Competitive Landscape in China - The competitive landscape in China is described as **intense**, with dynamics similar to the rest of Asia, but Vertiv leverages its global experience and efficiency focus to navigate this market [64][65] Additional Important Insights - The integration of cooling and power solutions is becoming increasingly critical as data center architectures evolve to support higher rack densities [14][15] - The company is exploring new service opportunities as the industry shifts towards higher voltage systems, indicating a proactive approach to emerging trends [42][42]

Vertiv (VRT) FY Conference Summary Industry Overview - The critical digital infrastructure industry is projected to experience a compound annual growth rate (CAGR) of 9% to 12% through 2029, with mid-teens growth anticipated in cloud and colocation sectors [3][4][6] - The demand for data center capacity remains strong, driven by AI advancements and the need for enhanced infrastructure [5][9][22] Core Insights - The company maintains that the growth assumptions from the Investor Day remain valid despite market fluctuations, with a potential for even stronger demand than previously anticipated [4][7][9] - The shift from AI training to inference is noted, with inference expected to grow faster due to its monetization potential [15][17] - The company reported a record quarter for orders, with a year-on-year increase of 13% and a 60% increase compared to the previous year [11][12] Demand Dynamics - The demand for large data centers continues, alongside a rise in smaller, distributed edge data centers [18][19] - There are no significant long-term changes in market dynamics, although short-term adjustments may occur due to resource constraints [21][22] - The company is optimistic about long-term demand, supported by a strong pipeline and industry trends [22][23] Competitive Landscape - New entrants in the market, including sovereign and neo cloud providers, are expanding the industry, but the company does not perceive this as an increase in risk [26][27] - The company employs rigorous credit checks and often requires advanced payments to mitigate risks associated with new customers [28][29] Tariff Impact - The company has not observed any material impact from tariffs on demand, as the demand for AI capacity remains robust [31][32] - There is a focus on maintaining competitive lead times, which may provide opportunities for market share gains amidst tariff uncertainties [37][39] Capital Expenditure (CapEx) Strategy - The company plans to maintain a 25% to 30% capacity headroom versus demand, indicating confidence in future growth [47][50] - CapEx allocation is influenced by geopolitical conditions, but no dramatic shifts in strategy are expected [48][49] Product Innovation and Market Share - Recent product launches, including new chillers and modular solutions, are aimed at increasing market share and addressing customer needs [52][56] - The company is particularly focused on expanding its liquid cooling capacity, which has seen significant growth [61][62] Conclusion - Vertiv is positioned to capitalize on the growing demand for critical digital infrastructure, with a strong pipeline, innovative product offerings, and a strategic approach to managing risks associated with market dynamics and tariffs [9][22][37][61]

Group 1 - The article discusses the potential investment opportunity in Vertiv Holdings (NYSE: VRT), suggesting that the worst may be behind the company and it is well-positioned for future growth [1] - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1] - The author indicates a potential intention to initiate a long position in VRT within the next 72 hours, reflecting a bullish sentiment towards the stock [1]

Core Viewpoint - Vertiv (VRT) shares have declined 19% year to date, underperforming the broader Zacks Computer and Technology sector and the Zacks Computers - IT Services industry, primarily due to macroeconomic challenges and trade war fears stemming from U.S. tariffs [1][2]. Company Performance - VRT stock has underperformed compared to Eaton (ETN), which has invested over $8 billion in sustainable energy solutions, with Eaton's shares down 11.3% year to date [2]. - Vertiv's organic orders grew approximately 20% in the trailing 12 months, with a book-to-bill ratio of 1.4 for Q1 2025, indicating strong prospects [5]. - The backlog increased by 10% sequentially and 25% year over year, reaching $7.9 billion [5]. Product Portfolio Expansion - Vertiv launched four new systems in March 2025 aimed at AI applications, including Vertiv Unify software and SmartRun modular solutions, enhancing power efficiency and scalability [6]. - The introduction of the Vertiv CoolLoop Trim Cooler offers up to 70% energy savings and 40% space reduction for high-density cooling environments [7]. Strategic Partnerships - Vertiv's partnerships with companies like Tecogen, NVIDIA, and others are key growth drivers [8][9][10]. - The collaboration with Tecogen focuses on advanced natural gas-powered chiller technology for data centers, enhancing cooling solutions [9]. - The partnership with NVIDIA aims to launch a modular AI supercomputer in Italy by 2025 [10]. Financial Guidance - For 2025, Vertiv expects revenues between $9.325 billion and $9.575 billion, with organic net sales growth projected at 16.5% to 19.5% [11]. - The second-quarter 2025 revenue forecast is between $2.325 billion and $2.375 billion, with organic net sales growth expected in the 19% to 23% range [12]. Earnings Estimates - The Zacks Consensus Estimate for second-quarter 2025 revenues is $2.27 billion, indicating a year-over-year growth of 16.48% [13]. - The 2025 earnings estimate is pegged at $3.55 per share, reflecting a 24.56% increase from 2024 [14]. Valuation Metrics - Vertiv is currently trading at a trailing 12-month Price/Book ratio of 12.19X, compared to the sector's 8.90X, indicating it is overvalued [15]. - The company has a Zacks Rank 3 (Hold), suggesting investors should wait for a more favorable entry point [19].

Core Viewpoint - Vertiv (VRT) and Super Micro Computer (SMCI) are key players in the AI infrastructure market, which is expected to exceed $200 billion in spending by 2028, presenting significant investment opportunities for both companies [1]. Company Performance - Vertiv shares have declined 24.2% year-to-date (YTD), while Super Micro Computer shares have increased by 21.7%. Since the 90-day tariff pause on April 9, VRT shares have appreciated 18.3%, compared to SMCI's 1.1% [2]. Vertiv (VRT) Analysis - Vertiv's extensive product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. Organic orders grew approximately 20% in the trailing 12 months, with a book-to-bill ratio of 1.4 for Q1 2025, indicating strong prospects. The backlog increased by 10% sequentially and 25% year-over-year to $7.9 billion [5]. - In March, Vertiv launched four new systems, enhancing capabilities in infrastructure management, modular deployment, advanced thermal management, and DC power distribution [6]. - Strong capital expenditure plans by hyperscalers for data center expansion are favorable for Vertiv. The company expects net sales for 2025 to be between $9.325 billion and $9.575 billion, up from the previous guidance of $9.13 billion to $9.28 billion. The Zacks Consensus Estimate for VRT's 2025 revenues is $9.23 billion, reflecting a year-over-year growth of 15.14% [7]. Super Micro Computer (SMCI) Analysis - Super Micro Computer is experiencing growth due to the increasing deployment of AI and HPC workloads, with rising demand for its high-performance and energy-efficient servers as data centers expand [9]. - The company leads the Direct Liquid Cooling (DLC) market, having shipped over 3,000 DLC racks in 2024, which is approximately 70% of the global DLC market. SMCI is rapidly expanding its production facilities across Malaysia, Taiwan, Europe, and the United States [10]. - Super Micro Computer has a growing partner base, including Intel and AMD, and utilizes Intel Gaudi 3 accelerators for scalable AI tasks. Its H14 Series servers leverage AMD's EPYC 9005 CPUs and GPU-Accelerated Systems utilize AMD's Instinct MI325X GPUs [11]. Earnings Estimates - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $3.55 per share, down by 1.11% over the past 30 days, indicating a 24.56% increase over 2024's reported figure [12]. - For Super Micro Computer, the consensus estimate for fiscal 2025 earnings has declined by 1.2% to $2.52 per share over the past 30 days, suggesting a 14.03% growth over fiscal 2024 [13]. Earnings Quality - Vertiv has consistently beaten the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 10.42%. In contrast, Super Micro Computer has beaten estimates twice and missed once, with a negative surprise of 1.82% [14]. Valuation Comparison - Both companies are considered overvalued, with a Value Score of D. Vertiv shares are trading at a forward 12-month Price/Earnings ratio of 22.57X, while Super Micro Computer's ratio is 11.84X, indicating that SMCI is cheaper than VRT [14][15]. Conclusion - Super Micro Computer benefits from strong momentum from data center and cloud computing clients and is less exposed to tariff concerns compared to Vertiv. Currently, SMCI holds a Zacks Rank 1 (Strong Buy), making it a stronger investment choice compared to Vertiv, which has a Zacks Rank 3 (Hold) [18].