Core Insights - The overseas computing power industry chain has strengthened significantly since July, driven by the intensive release of large models and the concentrated disclosure of earnings reports from US tech companies [1] - The liquid cooling sector, closely tied to the AI wave, has emerged as a new focus for investors due to clear technological trends and accelerated industry advancements [1] - Liquid cooling technology is expected to become a core battlefield for AI industry development by 2025, marking a critical breakthrough year [1] Industry Performance - Key assets in the computing power sector, such as servers, PCBs, and optical modules, have seen significant price increases since July, with Industrial Fulian's server segment rising by 131%, PCB's Pengding Holdings by 66%, and optical module's Xinyisheng by 100% [1] - Vertiv, a leading player in the liquid cooling market, reported Q2 2025 revenue of $2.638 billion, exceeding previous guidance by $288 million, and raised its fiscal year 2025 revenue guidance from $9.325-9.575 billion to $9.925-10.075 billion [2] Technological Advancements - The introduction of liquid cooling technology in core products like switches and GPUs is accelerating, with NVIDIA launching the GB300 NVL72 platform featuring a fully liquid-cooled design [3] - CoreWeave has deployed the first AI server systems based on the GB300 NVL72, indicating the commercial phase of this product line [3] Market Drivers - The increasing power consumption of GPUs, with some models exceeding 700W, necessitates liquid cooling solutions as traditional air cooling becomes inadequate [4] - Stricter Power Usage Effectiveness (PUE) policies globally are pushing for the adoption of liquid cooling technology, with targets set for new data centers to achieve PUE below 1.3 in China and below 1.4 in the US [4] Supply Chain Dynamics - The liquid cooling data center industry chain includes upstream components, midstream servers, and downstream users, with companies capable of providing complete system solutions gaining competitive advantages [5] - Key upstream components include cold plates, UQD, manifolds, CDU, connectors, electromagnetic valves, and tanks, while midstream players include server manufacturers like Inspur and Lenovo [5] Future Outlook - The current bottleneck in AI development is the "power contradiction," where high power consumption leads to significant cooling challenges, which liquid cooling technology can effectively address [6] - The liquid cooling industry is expected to enter a high-growth "golden era" driven by the positive impact of AI development on its applications [6]

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]

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]

Group 1: Company Overview - Oklo's share price has increased by over 750% in the past year, driven by the AI boom [1] - The company is developing small modular nuclear reactors (SMRs) and is collaborating with Vertiv to create cooling systems for nuclear-powered data centers [5] - Oklo has begun the regulatory process for its SMR technology and aims to deploy a working product by 2027 [6] Group 2: Industry Context - Nuclear power is gaining renewed interest due to its ability to generate electricity without consuming it, unlike traditional data processing facilities that require significant energy [4] - The U.S. Department of Energy has selected Oklo as one of 11 companies for its Nuclear Reactor Pilot Program, which could expedite Oklo's market entry [7] Group 3: Competitive Landscape - Despite Oklo's impressive stock performance, its shares have declined by over 15% since the DOE announcement [8] - Unlike Nvidia, which had established revenue streams prior to the AI boom, Oklo currently has no revenue and may take years to achieve profitability [10] - Oklo's status as one of several companies in the pilot program suggests uncertainty regarding its potential success in the SMR market [9]

Core Viewpoint - The liquid cooling sector is experiencing a significant increase in demand driven by multiple factors, including advancements in AI technology, supportive policies, and positive performance in the global AI computing supply chain [2][3]. Group 1: Market Performance - On August 21, A-shares saw a slight increase, while AI computing hardware sectors, including liquid cooling servers, faced significant declines, with companies like Feilong Co. and Tenglong Co. hitting the daily limit down [1]. - The Cloud Computing 50 ETF experienced fluctuations, with stocks like Shiji Information and China Software performing well, while others like Dawning Information and Tuwei Information saw declines [1]. Group 2: Industry Outlook - Institutions remain optimistic about the long-term prospects of the liquid cooling sector, citing a confluence of industrial demand, policy support, and changes in expectations as key drivers of market activity [2]. - The demand for liquid cooling is expected to rise significantly due to the introduction of products like NVIDIA's GB300 and Huawei's Ascend 384, which will enhance the overall demand in the computing supply chain [2]. - Policies from various levels of government are setting clear energy consumption requirements for data centers, with a goal to reduce the average Power Usage Effectiveness (PUE) to 1.5 by the end of 2025 [2]. Group 3: Technological Trends - The year 2025 is anticipated to be a pivotal year for the penetration of AI liquid cooling technologies, as traditional cooling methods are becoming inadequate for the increasing power demands of AI computing [3]. - Major cloud service providers, including Google, Microsoft, and Alibaba, are adopting liquid cooling solutions, indicating a shift from optional to essential technology [3]. - The global liquid cooling penetration rate in data centers is projected to reach approximately 30% by 2026, reflecting the growing necessity for efficient cooling solutions [3].

Core Insights - Vertiv Holdings Co has successfully completed the acquisition of Great Lakes Data Racks & Cabinets for approximately $200 million, enhancing its leadership in high-density integrated infrastructure solutions for data centers and critical digital environments [1][2]. Group 1: Acquisition Details - The acquisition expands Vertiv's portfolio in rack, cabinet, and integration solutions specifically for white space applications [1][2]. - Great Lakes, established in 1985 and headquartered in Edinboro, PA, operates manufacturing and assembly facilities in the U.S. and Europe, offering a range of products including standard and custom racks, integrated cabinets, and enhanced cable management options [3]. Group 2: Strategic Benefits - The integration of Great Lakes' expertise is expected to streamline infrastructure sourcing, enable faster deployment through pre-engineered solutions, and enhance operational efficiency with factory integration of Vertiv's power and cooling solutions [2]. - The acquisition will improve scalability for AI and edge computing applications and provide comprehensive support through Vertiv's global service network [2]. Group 3: Company Overview - Vertiv provides critical digital infrastructure solutions, combining hardware, software, analytics, and ongoing services to support vital applications across data centers, communication networks, and commercial facilities [5]. - The company operates in over 130 countries, addressing challenges in power, cooling, and IT infrastructure from the cloud to the edge of the network [5].

Core Insights - Vertiv (VRT) is a leading provider of thermal and power management solutions for data centers, with increasing demand driven by the complexity of AI hardware and edge computing [1][2] - In Q2 2025, Vertiv's net sales rose 35.1% year over year to $2.64 billion, and its backlog increased by 21% to $8.5 billion [1] - Order growth for Vertiv's solutions was approximately 15% year over year and 11% sequentially in Q2 2025, reflecting customer expansion plans in AI and data centers [2] Product and Innovation - Vertiv launched Vertiv OneCore, a scalable prefabricated data center solution that integrates power, thermal, and IT infrastructure, aimed at accelerating high-density deployments [3] - Collaborations with CoreWeave and Oklo have enhanced Vertiv's technology leadership, positioning the company for long-term growth in the evolving data center market [3] Competitive Landscape - Vertiv faces stiff competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both expanding their capabilities for hyperscale and enterprise AI data center deployments [4][6] - Super Micro Computer is enhancing its position with end-to-end AI rack-scale systems, while Hewlett-Packard is expanding through HPE Cray and ProLiant servers [5] Stock Performance and Valuation - Vertiv's shares have increased by 13.6% year to date, outperforming the broader Zacks Computer & Technology sector, which rose 11.8%, while the Zacks Computers - IT Services industry declined by 15.7% [7] - Vertiv's stock is trading at a premium with a trailing 12-month Price/Book ratio of 15.77X compared to the sector's 9.75X, and it has a Value Score of F [10] Earnings Estimates - The Zacks Consensus Estimate for Q3 earnings is 99 cents per share, reflecting a 30.26% year-over-year growth, while the estimate for 2025 earnings is $3.82 per share, indicating a 34.04% increase from 2024 [12]

Summary of Liquid Cooling Industry and AI Server Market Industry Overview - The liquid cooling industry is experiencing rapid growth driven by the increasing power consumption of AI chips, with NVIDIA GPUs rising from 400 watts to 1,400 watts over five years, and the DGX D200 server consuming up to 14.3 kilowatts, far exceeding traditional servers [1][2][3] - Virtus predicts that by 2029, the power of a single AI GPU cabinet will exceed 1 megawatt, with an average cabinet density surpassing 50 kilowatts, indicating a significant advantage for liquid cooling as cabinet density exceeds 20 kilowatts [1][3] Key Points and Arguments - **Market Growth**: The Chinese liquid cooling market is expected to reach $2.4 billion in 2024, growing 67% year-on-year, with a projected compound annual growth rate (CAGR) of 47% over the next five years, reaching $16.2 billion by 2029 [1][12] - **Technology Adoption**: Cold plate liquid cooling technology is expected to mature and be adopted first due to its higher efficiency compared to air cooling, while immersion cooling, although more efficient, faces challenges related to cooling media and long-term immersion [1][4] - **Investment Opportunities**: The current market is at a pivotal point, transitioning from traditional air cooling to liquid cooling, driven by the need for efficient heat dissipation in high-power AI servers [2][5] - **Component Value**: The core components of liquid cooling systems, such as cold plates and CDU, have significant value, with the GB200NZL72 system valued between $73,000 and $83,000 per cabinet [2][17] Market Dynamics - **Demand Drivers**: Major demand drivers include large data centers, AI chips, and telecommunications operators, which collectively account for 90% of the demand in the Chinese market [12] - **Global AI Server Market**: The global AI server market is projected to reach $3.1 billion in 2025 and $8.6 billion in 2026, with NVIDIA GPUs accounting for over 80% of the market share [13][14] - **Capital Expenditure Trends**: There is an optimistic outlook for capital expenditures in 2026, driven by the acceleration of AI business models and sustained growth in AI computing demand [7][6] Competitive Landscape - **Key Players**: Major players in the liquid cooling supply chain include Vertiv, Colt, and Delta, with Vertiv being a significant partner in NVIDIA's ecosystem [21][22] - **Domestic Developments**: Chinese companies like InnoTek and Shuguang are rapidly developing liquid cooling technologies and entering global supply chains, with InnoTek recognized in NVIDIA's partner network [23][24] Investment Considerations - **Focus Areas**: Investors should consider companies capable of entering overseas supply chains, particularly those recognized by NVIDIA, as well as domestic firms involved in AI chip development and high-density solutions [25] - **Market Trends**: The increasing power levels of AI chips are driving the need for advanced cooling solutions, making this an opportune time to explore various liquid cooling technologies [26][27] Conclusion - The liquid cooling market is poised for significant growth, driven by the rising power demands of AI technologies and the transition from traditional cooling methods. Investors should closely monitor developments in this sector and consider the implications of technological advancements and market dynamics on potential investment opportunities.

Core Viewpoint - The increasing demand for artificial intelligence is driving significant investment in data centers, benefiting companies like Vertiv, which has seen its stock rise by 84% since March [1]. Group 1: Company Performance - Vertiv's sales guidance for 2025 has shown a consistent upward trend, with an increase from $9.125 million in February to $9.925 million in July, representing an 8.7% increase [4]. - The adjusted operating profit guidance has also increased, but at a slower rate, from $1.910 million in February to $2.030 million in July, reflecting a 2.8% increase [4]. - Free cash flow guidance has improved from $1.275 million in February to $1.375 million in July, marking a 7.7% increase [4]. Group 2: Market Dynamics - The growth in the data center market is primarily driven by the rising demand for artificial intelligence applications, indicating a multi-year expansion in data center spending [6]. - Vertiv is positioned to benefit from this trend, particularly through its collaboration with Nvidia in developing power systems for next-generation data centers [6]. Group 3: Future Outlook - Provided that the tariff environment remains stable, future orders and revenue increases for Vertiv are expected to lead to significant profit and cash flow growth [5]. - The company is in the early stages of capitalizing on the expanding data center market, suggesting that it is not too late for investment opportunities [7].