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].

Investment Rating - The industry investment rating is "Outperform the Market - A" [7] Core Viewpoints - Liquid cooling technology is becoming a trend in data centers due to the increasing power consumption from AI chip performance upgrades, driven by three factors: industrial demand, policy support, and marginal changes in expectations [2][13] - The deployment of NVIDIA's GB300 and Huawei's Ascend 384 servers significantly boosts the demand for liquid cooling, as these advanced AI chips require efficient cooling solutions [3][14] - Various levels of policies have set clear requirements for liquid cooling and energy consumption in data centers, aiming for a national average PUE of 1.5 by the end of 2025 [4][15] - The overseas AI computing industry is showing strong performance, with Vertiv reporting a 35% year-on-year revenue increase in Q2 2025, indicating robust market demand [5][16] Summary by Sections Industry Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [7] Industry Performance - The computer industry index increased by 6.31% this week, outperforming the Shanghai Composite Index by 4.61 percentage points [17][18] Key Industry News - The report highlights the significant advancements in liquid cooling technology and its adoption by leading AI chip manufacturers, which is expected to drive demand across the computing industry [3][14] - The report also notes the positive financial results from global leaders in liquid cooling, reflecting a favorable market outlook [5][16]

Core Viewpoint - The liquid cooling sector has experienced a significant surge, with over 27 stocks rising more than 5%, indicating strong market interest and potential demand driven by AI chip cooling needs [1][2]. Market Performance - The overall A-share market showed robust performance, with the Shanghai Composite Index closing up 0.83% at 3696.77 points, and the ChiNext Index rising over 2% [1]. - More than 4600 stocks increased in value, with trading volume exceeding 2 trillion yuan for three consecutive days [1]. Liquid Cooling Sector Dynamics - The liquid cooling server market is being compared to the previous boom in optical modules, with expectations of significant growth and the emergence of multiple tenfold stocks [1][4]. - Recent supply chain news indicated a dramatic price increase for liquid cooling components, with quick connectors rising from 700 yuan to 2100 yuan (200% increase) and cold plates from 1500 yuan/kW to 1800 yuan/kW [3][4]. - The penetration rate of liquid cooling is projected to increase from less than 15% in 2023 to 50% by 2025, driven by the rising power consumption of AI servers [3][6]. Company Performance - Companies like Deyuan Pump Industry and Jintian Co. have shown strong stock performance, with Deyuan hitting its fifth consecutive trading limit [2][4]. - Vertiv, a leading overseas liquid cooling company, reported revenue of $2.638 billion for Q2 2025, exceeding guidance and indicating strong demand in the sector [4]. Industry Outlook - The liquid cooling technology is becoming essential for managing the high heat output of AI chips, with NVIDIA's GB300 platform fully adopting liquid cooling designs [6]. - Analysts believe that domestic liquid cooling manufacturers possess strong competitive advantages in key components, with some already making inroads into overseas markets [6][7]. - The liquid cooling industry is expected to enter a rapid growth phase from late 2025 to 2026, benefiting from technological advancements and increased application scale [7].

Core Viewpoint - The main contradiction in current AI development is "power," with high power consumption leading to heat issues that restrict chip performance. Liquid cooling technology is seen as a key solution to this problem, and the industry is expected to enter a "golden age" for liquid cooling in data centers as AI development accelerates [1] Group 1: Market Dynamics - The liquid cooling sector has recently become a market focus, driven by various marginal changes and the acceleration of industry implementation. The company emphasizes that "speed" and "power" are the two core contradictions in AI development, with liquid cooling being the key to resolving power density issues [1] - The year 2025 is anticipated to be a breakthrough year for liquid cooling technology, marking a transition from 0 to 1, with industry trends and technological upgrades positioning liquid cooling as the next battleground for AI industry upgrades [1] Group 2: Performance and Demand - Vertiv, a leading overseas liquid cooling company, reported Q2 2025 revenue of $2.638 billion, exceeding guidance, and raised multiple forecasts for fiscal year 2025, indicating strong demand for liquid cooling solutions [2] - Recent advancements include the commercial launch of the GB300NVL72 platform, which features a fully liquid-cooled rack design, and the application of liquid cooling in switches and other areas [2] Group 3: Underlying Logic - The rapid iteration of computing chips has led to significant increases in power consumption, with single cabinet power density rising due to multi-card interconnectivity. For instance, the NVIDIA GB200NVL72 cabinet has a power capacity of 140KW, while Huawei's CM384 super node approaches 500KW, necessitating liquid cooling solutions [3] - Various countries and international organizations have implemented strict policies regarding power usage effectiveness (PUE), with liquid cooling effectively reducing energy consumption in cooling systems and aiding in meeting PUE standards [3] Group 4: Supply Chain Insights - The liquid cooling data center supply chain consists of upstream components, midstream servers and infrastructure, and downstream users. Companies offering comprehensive system solutions are expected to be more competitive in the future [4] - Key components in liquid cooling include cold plates and UQD, with cold plates being critical due to their high material costs and complex processing. The usage of UQD in the GB300 has significantly increased compared to the GB200 [4] - The year 2025 is seen as a crucial certification period for the industry chain, with ongoing attention to sample submissions, testing, and order placements from relevant manufacturers [4]