Core Insights - The company reported strong orders with trailing 12-month orders up 11% year-over-year and 2Q orders up 15% [1][2] - The competitive landscape is encouraging, with strong performance from competitors also noted [1] - The strength of the company's pipeline is increasing quarter-by-quarter, with no signs of decline observed [2]

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]

Core Insights - Vertiv (VRT) and Amphenol (APH) are significant players in the AI Infrastructure market, with Vertiv focusing on power and cooling solutions for data centers, while Amphenol provides high-performance connectors and interconnect systems essential for AI hardware [1][2] Market Overview - The AI infrastructure market was valued at $87.6 billion in 2025 and is projected to reach $197.64 billion by 2030, with a compound annual growth rate (CAGR) of 17.71% [2] Vertiv (VRT) Analysis - Vertiv has a diverse product portfolio that includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, contributing to its growth [3] - In the trailing 12 months, Vertiv's organic orders increased by approximately 11%, with a book-to-bill ratio of 1.2 for Q2 2025, indicating strong demand [3] - The company's backlog grew by 7% sequentially and 21% year-over-year, reaching $8.5 billion [3] - Vertiv's energy-efficient solutions are crucial for meeting the rising power demands of complex AI hardware and edge computing [4] - The launch of Vertiv OneCore, a scalable prefabricated data center solution, is expected to enhance deployment efficiency and reduce complexity [5] - Vertiv has established partnerships with notable companies such as NVIDIA and Intel, further solidifying its position in the AI infrastructure space [6] Amphenol (APH) Analysis - Amphenol benefits from a diversified business model and a strong portfolio of high-technology interconnect products [7] - The company launched the UQD and UQDB liquid cooling connector series in June 2025, aimed at improving thermal management in AI data centers and EV charging infrastructure [8] - Amphenol's acquisitions, including CIT and CommScope's Andrew business, are enhancing its technological capabilities and market reach [9] - The company's order growth surged by 36% year-over-year, reaching $5.523 billion, with a book-to-bill ratio of 0.98:1 in Q2 2025 [9] Performance Comparison - Year-to-date, Vertiv's shares have increased by 9.2%, while Amphenol's shares have appreciated by 59%, attributed to Amphenol's diversified market exposure and effective acquisition strategy [12] - Vertiv's shares are currently trading at a trailing 12-month Price/Book ratio of 15.15X, compared to Amphenol's 11.64X, indicating that both stocks are overvalued [15] - Earnings estimates for Vertiv in 2025 are projected at $3.82 per share, reflecting a 34.04% year-over-year increase, while Amphenol's estimates are at $3.02 per share, showing a 59.79% increase [17] Conclusion - Both Vertiv and Amphenol are positioned to benefit from the AI infrastructure boom, but Amphenol's stronger earnings momentum and diversified growth drivers suggest it may offer greater upside potential in the near term [20]

Core Viewpoint - Oklo, an AI-focused nuclear energy start-up, is experiencing significant stock growth, with shares up over 225% this year, driven by rising electricity usage and interest in nuclear energy [1][2]. Company Strategy - Oklo is uniquely targeting AI providers in its investment approach, differentiating itself from traditional nuclear companies that sell electricity to any willing buyer [3]. - The company has formed a collaboration with Vertiv to develop thermal management solutions for data centers powered by Oklo's nuclear plants, leveraging the heat generated by both systems [5]. Historical Context - Oklo went public in 2024 through a merger with AltC Acquisition, a SPAC led by OpenAI founder Sam Altman, who previously served as the board chair [6]. - The company has garnered attention from influential investors, including Cathie Wood's Ark Invest, and has received notable support from the Trump administration, which has promoted nuclear energy [7][8]. Government Support - The U.S. Department of Energy selected two Oklo projects for its Nuclear Reactor Pilot Program, with a goal to have three reactors operational by July 4, 2026, indicating strong governmental backing [9]. Market Potential - If Oklo successfully brings one of its small modular reactor (SMR) prototypes online by 2027 and secures orders from major AI companies, its share price could significantly increase, rewarding early investors [11].

Core Insights - Vertiv (VRT) shares have increased by 10.6% year to date, underperforming the broader Zacks Computer and Technology sector's growth of 14.1% due to a challenging macroeconomic environment [1] - The company has outperformed the Zacks Computers - IT Services industry, which has seen a decline of 15.3% during the same period [2] Stock Performance - Vertiv's backlog grew by 21% year over year to $8.5 billion, with a book-to-bill ratio of 1.2 for Q2 2025, indicating strong demand [5][10] - The revenue outlook for 2025 has been raised to between $9.93 billion and $10.08 billion, with organic growth projected at 23% to 25% [10][13] Product and Service Expansion - Vertiv launched Vertiv OneCore, a scalable prefabricated data center solution that integrates power, thermal, and IT infrastructure [7] - The company acquired Waylay NV to enhance its AI-driven monitoring and control capabilities for data centers [8] Partnerships and Collaborations - Vertiv's extensive partner base, including companies like NVIDIA and Intel, has been a significant growth driver [9] - Collaboration with Tecogen provides advanced natural gas-powered chiller technology, addressing power constraints for AI deployments [12] Earnings Estimates and Valuation - The Zacks Consensus Estimate for Q3 2025 earnings is 99 cents per share, reflecting a year-over-year increase of 30.26% [15] - Vertiv is currently trading at a trailing 12-month Price/Book ratio of 15.36X, indicating it is overvalued compared to the broader sector [17] Conclusion - Vertiv's strong portfolio and partner base are driving order growth, justifying its premium valuation [21]

Company Performance - Vertiv Holdings Co. closed at $127.73, down 4.84% from the previous trading session, underperforming the S&P 500, which lost 0.64% [1] - The stock has decreased by 7.81% over the past month, while the Computer and Technology sector gained 2.91% and the S&P 500 gained 1.91% [1] Earnings Projections - The upcoming earnings report is expected to show earnings of $0.99 per share, reflecting a year-over-year growth of 30.26% [2] - The Zacks Consensus Estimate for revenue is projected at $2.57 billion, an increase of 24.13% from the previous year [2] - For the full year, analysts expect earnings of $3.82 per share and revenue of $9.97 billion, representing changes of +34.04% and +24.47% respectively from last year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates indicate a positive outlook for Vertiv Holdings Co., with a Zacks Rank of 2 (Buy) [4][6] - The Zacks Consensus EPS estimate has increased by 7.03% in the past month [6] Valuation Metrics - Vertiv Holdings Co. has a Forward P/E ratio of 35.11, which is a premium compared to the industry average of 16.87 [7] - The company has a PEG ratio of 1.18, compared to the Computers - IT Services industry average PEG ratio of 2.11 [8] Industry Context - The Computers - IT Services industry is ranked 158 out of over 250 industries, placing it in the bottom 37% [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Insights - Vertiv (VRT) is experiencing strong organic order growth, with a 15% year-over-year increase and 11% sequential growth in Q2 2025, surpassing $3 billion in orders for the first time [1][10] - The company's backlog reached $8.5 billion, reflecting a 21% year-over-year increase and a 7% sequential increase, supported by a book-to-bill ratio of 1.2x [2][10] - Regional performance is a significant growth driver, with the Americas showing mid-40% growth, APAC with mid-30% growth, and EMEA delivering high single-digit growth [2][10] Company Performance - The trailing 12-month organic orders growth is at 11%, indicating sustained momentum [2] - Vertiv's collaborations with industry leaders like CoreWeave and Oklo demonstrate its commitment to innovation in data center infrastructure [3] - Recent acquisition of Waylay NV enhances Vertiv's AI-driven monitoring and control capabilities for data centers [4] Competitive Landscape - Vertiv faces stiff competition from ABB and Eaton, both expanding their capabilities in the data center infrastructure market [5] - ABB reported double-digit order growth in Q2 2025, driven by demand across multiple regions [6] - Eaton's data center orders surged approximately 55% year-over-year, with a 50% increase in sales in Q2 2025 compared to the previous year [7] Stock Performance and Valuation - Vertiv's shares have gained 18.2% year-to-date, outperforming the broader Zacks Computer & Technology sector, which appreciated 13.4% [8] - The stock is trading at a premium with a trailing 12-month Price/Book ratio of 16.40X compared to the sector's 10.21X [11] - The consensus estimate for 2025 earnings is $3.82 per share, reflecting a 34.04% increase from 2024 [13]

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]