Vertiv(US:VRT) Sou Hu Cai Jing·2025-09-26 05:47Company 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]