Group 1 - The AI/data center sector is experiencing significant growth, benefiting technology stocks like Nvidia and presenting investment opportunities in "old economy" stocks such as Vertiv [1][5] - Vertiv specializes in developing, manufacturing, and selling power systems for data centers and communication networks, having transitioned from Emerson Electric to a public company in 2020 after private equity ownership [2] - Vertiv's organic orders increased by 15% year-over-year in Q2 2025 and 11% sequentially from Q1 2025, indicating strong demand in the AI/data center market [3] Group 2 - Vertiv's book-to-bill ratio of 1.2 suggests robust future growth, with projected sales growth of 25% in 2025 and 16.6% in 2026 [5][7] - The ongoing capital spending by data center hyperscalers, highlighted by a $300 billion investment deal between OpenAI and Oracle, signals continued growth potential for data center infrastructure stocks like Vertiv [5]

Company Overview - Vertiv Holdings Co (NYSE:VRT) specializes in providing digital infrastructure technologies and lifecycle services for data centers, networks, and industrial environments, including power management, thermal systems, modular solutions, and monitoring software [2]. Investment Insights - Jim Cramer highlighted Vertiv as a stock to consider for investment, particularly in light of positive data center performance indicators from Oracle, which he views as a validation for Vertiv's business [1]. - Cramer expressed confidence in Vertiv's potential, suggesting that it is an opportune time to invest in the company, especially given its strong product offerings and market position [2]. Market Context - The discussion around Vertiv is set against a backdrop of significant developments in the tech industry, including Amazon's product capabilities and the broader implications of AI advancements, which may influence investment strategies [2].

Group 1 - Shares in Vertiv rose by 9.4% in the week through Friday morning, reflecting a positive sentiment in the AI and data center market [1] - The sector experienced a boost from a significant deal between OpenAI and Oracle, where OpenAI will purchase $300 billion worth of computing power from Oracle over five years, indicating strong investment trends in data centers [2] - Vertiv has raised its full-year sales, earnings, and cash flow guidance due to a strengthening environment, with organic orders increasing by 15% year over year in the second quarter, suggesting continued growth [3] Group 2 - Vertiv is developing power infrastructure solutions for next-generation data center technology, specifically the new 800V high voltage direct current (HVDC) data centers, which are expected to launch in 2027 [5] - The ramp-up in AI and data center spending, as indicated by Oracle's deal, suggests that the technology Vertiv is currently developing will see strong demand in the coming years [6]

Core Insights - Oracle's quarterly results highlighted a significant increase in AI-related spending, with its backlog rising 359% to $455 billion, driven by investments from AI hyperscalers and a major deal with OpenAI [1] Company Overview: Vertiv - Vertiv, a company collaborating with Nvidia, is positioned to benefit from the AI data center boom, ensuring high-density computing operates efficiently around the clock [2][6] - The company has a diverse portfolio that includes critical power, thermal management, and IT infrastructure, supporting the operations of AI data centers and the technology-driven economy [4] Financial Performance - Vertiv has received a Zacks Rank 1 (Strong Buy) due to an improving earnings outlook, with a projected revenue growth of 25% in 2025 and 16% in 2026, reaching $11.55 billion, which is double its 2021 total [3][8] - The company is expected to expand its adjusted earnings per share (EPS) by 34% this year and 27% next year, following a 60% EPS growth last year and a remarkable 236% in 2023 [10][8] Market Attention and Analyst Recommendations - Wall Street's interest in Vertiv has increased, with 23 brokerage recommendations, 18 of which are "Strong Buys," reflecting confidence in its AI-driven growth potential [11] - The stock has outperformed AI hyperscalers, climbing 900% over the past three years, compared to Meta's 345% increase in the same period [12] Valuation and Trading Dynamics - Vertiv's stock trades approximately 12% below its average price target and is at a 30% discount to its highs, with a forward P/E ratio of 30.1X, compared to the tech sector's 28.6X [15] - The stock recently surged above its 50-day moving average, indicating potential for further upward momentum and new all-time highs [16]

Core Insights - Vertiv Holdings Co (NYSE:VRT) has shown significant stock performance, gaining 15% year-to-date and 130% since a drop in April, with a 7% increase in September alone [2][3] - The company specializes in power and cooling equipment for data centers, reporting a 35% year-over-year sales increase and a 12% earnings beat based on an 83-cent basis [3] Company Performance - Vertiv's recent earnings report exceeded expectations across nearly all metrics, indicating strong operational performance [3] - The company has a robust backlog and has raised its full-year forecast, reflecting confidence in future growth [3] Market Commentary - Jim Cramer highlighted Vertiv's air conditioning business, particularly its ownership of the Liebert brand, which has contributed to its strong market position [2][3]

Core Insights - Strong market demand is evident, with a reported 35% organic growth last quarter and a book-to-bill ratio of 1.2 [1] Group 1: Demand Indicators - The company emphasizes the importance of various metrics such as sales growth and book-to-bill ratio to gauge market performance [1] - A critical parameter for the company is the strength of its pipeline, which reflects future opportunities [1] Group 2: Pipeline Definition - The company defines its pipeline strictly as active commercial opportunities, indicating a rigorous approach to assessing potential growth [1]

Vertiv (NYSE:VRT) FY Conference Summary Company Overview - **Company**: Vertiv - **Date**: September 10, 2025 - **Key Speakers**: CEO Giordano Albertazzi, CFO David Fallon Industry Insights - **Market Demand**: Strong demand in the data center market with a reported **35% organic growth** last quarter and a **$1.2 book-to-bill ratio** [3][25] - **Pipeline Strength**: The strength of the pipeline is a critical indicator of future performance, defined as active commercial opportunities with quotes [5][6] - **Liquid Cooling**: The industry is shifting towards liquid cooling, which is expected to represent about **one-third of the total Total Addressable Market (TAM)** for data center cooling [9][10] - **CapEx Structure**: The growth in IT spending is increasing, but the physical infrastructure segment remains strong, indicating a healthy TAM for Vertiv [11][12] Key Company Strategies - **Focus on White Space**: Vertiv is increasing its presence in the white space of data centers, which is becoming a fertile ground for growth due to rising complexity in power and cooling distribution [12][14] - **Future-Proofing Infrastructure**: The company is collaborating with key players like NVIDIA to design future-proof data center infrastructures [16][19] - **Prefabrication Solutions**: Introduction of prefabricated solutions to significantly reduce fit-out time in data centers, enhancing time to revenue for customers [13][14] Growth Constraints and Capacity - **Growth Moderating Factors**: Power availability is a limiting factor in some regions, but there is no expectation of a cliff in demand. The construction nature of the data center industry also limits speed [25][26] - **Capacity Management**: Vertiv is expanding manufacturing capacity and ensuring service capacity grows in line with manufacturing to maintain operational leverage [27][29] Financial Performance - **Margins**: Gross margins faced pressure due to tariffs and operational challenges, but a recovery is projected with operating margins expected to reach **20% in Q3** and **over 23% in Q4** [33][34] - **Pricing Strategy**: The company is actively managing pricing to offset tariff impacts and is confident in maintaining a price-cost positive position moving forward [35][36] Regional Market Insights - **North America**: Strong growth with a **40% increase** in physical shipments [40] - **Europe**: Slow growth attributed to regulatory challenges, but strong pipelines and low vacancy rates in data centers suggest potential for future growth [42][43] - **Asia-Pacific**: Generally positive outlook, with specific mentions of growth opportunities in India and China [43] Conclusion - Vertiv is well-positioned in the data center market with strong growth indicators, a focus on innovative solutions, and strategic partnerships. The company is navigating challenges related to tariffs and capacity while maintaining a positive outlook for future performance.

Group 1: Daktronics, Inc. - Daktronics reported fiscal first-quarter 2026 net income of $16.5 million, or $0.33 per diluted share, compared to a net loss of $4.9 million, or $0.11 per share, in the prior-year period [2] - Adjusted earnings of $0.33 per share exceeded the $0.25 consensus estimate, while revenue was $218.972 million, down 3.1% from last year but above the $213.412 million estimate [2] - Following the financial results, Daktronics shares surged 24.5% to $21.70 [2] Group 2: Other Notable Stock Movements - Vimeo, Inc. shares jumped 61% to $7.75 as the company agreed to be acquired by Bending Spoons in an all-cash transaction valued at $1.38 billion [4] - Oracle Corporation surged 39% to $335.55 after reporting first-quarter financial results, with multiple firms raising their price targets on the stock [4] - GameStop Corp. gained 6.3% to $25.07 after reporting better-than-expected quarterly financial results and announcing a special dividend of tradable warrants [4]

Question-and-Answer SessionThought we could start off with a demand question. The company reported very strong orders on your 2Q earnings call. Trailing 12-month orders were up 11% year-over-year. 2Q orders were up 15%. Maybe talk a bit more, Gio, if you could kick us off about what's driving some of that strength?Giordano AlbertazziCEO & Director Well, first of all, thanks for reminding the very good numbers we printed in the second quarter, very strong TTM. And I'd like to remind everyone that our competi ...

Vertiv (NYSE: VRT) 2025 Conference Summary Company Overview - **Company**: Vertiv - **Industry**: Data Center Infrastructure and Services Key Points Demand and Orders - **Strong Orders**: Trailing twelve-month orders increased by 11% year-over-year, with Q2 orders up 15% [3][4] - **Market Landscape**: The company is encouraged by the strong market landscape and backlog, with a robust pipeline that is strengthening quarter by quarter [4] - **Customer Base Expansion**: Growth is not limited to hyperscalers; there is significant demand from colocation markets and NeoCloud, indicating a broadening customer profile [5][6] AI and Enterprise Spending - **AI Influence**: There is optimism regarding enterprise spending on AI, although growth is not expected to match the pace of hyperscale and colocation [8] - **Regional Insights**: North America is leading in AI investments, while Asia shows encouraging growth, and Europe is lagging but has potential [10][11] Lead Times and Capacity - **Lead Times**: Average lead times remain around 12-18 months, but there is a trend of shrinking lead times due to operational improvements [16][18] - **Pipeline Visibility**: The company has visibility into projects extending beyond 12-18 months, indicating strong future demand [18] Technology Trends and Revenue Opportunities - **Revenue per Megawatt**: The revenue opportunity per megawatt remains in the range of $2.75 million to $3.5 million, with potential for higher density solutions [19][20] - **Innovation Focus**: Vertiv is focused on innovation in power and thermal management, with a strong emphasis on prefabrication and integrated systems [22][23] Competitive Positioning - **Market Share Gains**: Vertiv is gaining market share due to its strong legacy, innovation, and partnerships with key technology players [24][25] - **Service Differentiation**: The company emphasizes its service capabilities, with a highly experienced field engineer base and strong training programs [28][30] Financial Outlook - **Tariff Mitigation**: The company is confident in offsetting tariff costs by the end of 2025 through supply actions and pricing strategies [33][34] - **EBIT Margin Target**: Vertiv aims for a 25% EBIT margin by 2029, with a positive trajectory indicated by increasing operating margins [38] - **CapEx Plans**: Projected CapEx for 2025 is between $250 million and $300 million, with strong cash flow conversion expected [41][42] M&A Strategy - **M&A Potential**: With strong free cash flow, Vertiv is positioned to pursue both smaller and larger M&A opportunities to enhance its technology portfolio [45][46] - **Share Repurchase Strategy**: The company remains open to opportunistic share buybacks while balancing investments in growth and M&A [47] Additional Insights - **Operational Improvements in Europe**: The company is actively working on improving operations in Europe, where demand has been weaker compared to other regions [37] - **Long-term Strategy**: Vertiv's strategy includes a mix of organic growth, M&A, and share repurchases to maximize returns and capitalize on market opportunities [45][47]