The rise of generative AI is a power-density story first and foremost. Hyperscale customers are already packing well over 100 kW of silicon into a single rack, a ten-fold jump in less than a decade, and industry surveys showI am a retired quant with a PhD in mechanical engineering. I started off my professional career as an engineer and eventually transitioned into a hybrid developer/quantative analyst role at the investment arm of one of the nation's largest insurance companies.I ended my career as a fixed ...

Core Viewpoint - Vertiv Holdings Co is positioned to benefit significantly from the rising demand for AI infrastructure, especially following its collaboration with Nvidia and a positive analyst upgrade, indicating potential for a price increase [1][2]. Group 1: Nvidia Collaboration - Vertiv announced a partnership with Nvidia to provide energy-efficient cooling and power solutions for the GB300 NVL72 platform, placing it at the forefront of next-generation AI data centers [2]. - The collaboration is expected to drive investment and urgency in the AI data center segment, which is experiencing rapid growth [2]. Group 2: Analyst Upgrade - Citi raised its price target for Vertiv from $98 to $130, suggesting an 11% upside from the current stock price of $117 [2]. - This upgrade reflects growing investor confidence in Vertiv's potential amidst the AI boom [2]. Group 3: Technical Analysis - Vertiv's stock is showing strong technical indicators, trading above its eight, 20, 50, and 200-day moving averages, with a MACD reading of 4.71 indicating bullish momentum [3]. - The RSI is at 64.35, suggesting buying pressure without reaching overbought levels [3]. Group 4: Fundamental Outlook - Long-term earnings growth for Vertiv is projected in the mid-20% range, with industry outperformance expected to be 300–500 basis points [4]. - Leadership under Dave Cote, former Honeywell CEO, is seen as a positive factor for the company's future performance [4]. Group 5: Market Position - Despite being 25% below its peak, the combination of Nvidia's partnership and surging AI demand positions Vertiv for a potential rebound [5].

Core Insights - Vertiv's digital infrastructure portfolio is gaining traction as hyperscalers and enterprises scale AI deployments to support high-performance data centers [1] - The company has launched a high-density reference design for NVIDIA's GB300 NVL72 platform, enhancing its presence in AI infrastructure [2] - Vertiv reported strong financial performance in Q1 2025, with net sales of $2.04 billion, a 24% year-over-year increase [3] Company Developments - The new AI-ready solution for NVIDIA's platform supports up to 142kW per rack, addressing extreme power and thermal requirements for AI workloads [2] - Vertiv's thermal management and integrated rack systems are expected to significantly contribute to revenue growth as enterprises invest in AI data centers [4] - Orders increased by 13% year-over-year, resulting in a backlog of $7.9 billion, driven by demand for AI infrastructure solutions [3][10] Competitive Landscape - Vertiv faces stiff competition from Super Micro Computer and Hewlett Packard Enterprise, both expanding their capabilities in AI data center deployments [5] - Super Micro Computer is enhancing its position with end-to-end AI rack-scale systems that cater to next-generation AI infrastructure needs [6] - Hewlett Packard Enterprise is expanding its offerings with AI-native infrastructure designed for enterprise and research customers [7] Financial Performance - Vertiv's shares have declined 2.3% year to date, contrasting with the broader Zacks Computer & Technology sector's 1.1% return [8] - The trailing 12-month Price/Book ratio for Vertiv is 15.86X, compared to the sector's 9.61X, indicating a premium valuation [12] - The Zacks Consensus Estimate for Q2 earnings is 82 cents per share, reflecting a 22.39% year-over-year growth [14]

And joining us now ahead of u the first day of a shortened uh trading week, Stephanie Link, High Tower, chief investment strategist and a CNBC contributor. Um we've been hit with you've been hit with just about everything. Uh so now we got the latest. Now we've got a major conflict in the Middle East.Uh Steph, anything change. Again, you you do what you're you keep on keeping on, right. Just just do what you do.Well, I'm trying. It's not easy on c certain weeks, but uh I think we're kind of chipping away at ...

Core Insights - Vertiv (VRT) and nVent Electric (NVT) are significant players in the data center infrastructure market, providing essential solutions for data centers and industrial environments [1] - The data center infrastructure management market is projected to grow from approximately $3.06 billion in 2024, with a CAGR of 17.3% from 2025 to 2030, presenting growth opportunities for both companies [2] Vertiv (VRT) Overview - Vertiv's product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions, with organic orders growing about 20% in the last 12 months and a book-to-bill ratio of 1.4 for Q1 2025, indicating strong prospects [3] - The backlog for Vertiv increased by 10% sequentially and 25% year-over-year, reaching $7.9 billion [3][10] - Recent product launches include a 142kW cooling and power reference architecture for NVIDIA's GB300 NVL72 platform, aimed at enhancing AI infrastructure deployment [4] - Vertiv introduced four new systems to meet AI application demands, focusing on power efficiency, thermal management, and scalability [5] - Strong capital expenditure plans from hyperscalers for data center expansion are favorable for Vertiv, supported by a rich partner base [6] nVent Electric (NVT) Overview - nVent Electric is experiencing strong momentum in the data center sector, with its Data Solutions business showing double-digit sales growth due to rising demand for electrical infrastructure products [7] - The recent $975 million acquisition of the Electrical Products Group from Avail Infrastructure Solutions enhances NVT's Systems Protection segment and expands its market presence [8] - nVent launched 35 new products during the quarter to address evolving data center demands [9] - Collaboration with NVIDIA to deliver advanced liquid cooling solutions for AI-driven data centers is a notable achievement [11] Stock Performance and Valuation - Year-to-date, Vertiv's shares have decreased by 2.7%, while nVent Electric's shares have increased by 0.7% [12] - Vertiv shares are currently overvalued with a Value Score of D, trading at a forward Price/Sales ratio of 4.17X, compared to nVent's lower valuation with a Value Score of B and a Price/Sales ratio of 3.01X [14] - Earnings estimates for 2025 indicate a projected $3.55 per share for Vertiv (24.56% year-over-year increase) and $3.08 per share for nVent (23.69% year-over-year increase) [17] Conclusion - Both Vertiv and nVent Electric are well-positioned to benefit from the growing data center market, but nVent is considered the stronger investment option due to consistent growth in its Data Solutions segment, strategic acquisitions, and favorable valuation [20] - nVent Electric holds a Zacks Rank 2 (Buy), while Vertiv has a Zacks Rank 3 (Hold), indicating a stronger investment outlook for nVent [21]

Core Insights - Vertiv has announced an energy-efficient cooling and power reference architecture for the NVIDIA GB300 NVL72 platform, supporting rack densities up to 142kW [1][3] - The collaboration with NVIDIA aims to develop AI infrastructure strategies that anticipate increased power densities in data centers [2][3] - The reference architecture is part of the Vertiv™ 360AI infrastructure platform, designed to optimize AI workloads and high-performance computing applications [3][4] Group 1: Product Features and Benefits - The reference architecture allows for faster scaling and digital optimization of AI-focused data centers before physical construction [3][5] - It delivers 1.5 times more AI performance, enables 50% faster on-site builds, and requires 30% less physical space [5] - The design supports liquid cooling and achieves up to 70% better annual energy efficiency through higher water temperatures [5] Group 2: Strategic Collaboration - Vertiv is working closely with NVIDIA to support 800 VDC data center power infrastructure for 1 MW IT racks, with solutions available starting in 2026 [2] - The partnership aims to enhance performance and sustainability in AI infrastructure, enabling organizations to meet demanding workloads [3] Group 3: Global Reach and Support - Vertiv operates in over 130 countries and is backed by more than 4,000 field service engineers globally, ensuring scalability and reliability for AI rollouts [5][6]

The most recent trading session ended with Vertiv Holdings Co. (VRT) standing at $108.47, reflecting a -3.15% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.The company's shares have seen an increase of 10.84% over the last month, not keeping up with the Computer and Technology sector's gain of 11.3% and outstripping the S&P 500's gain of 6.29%.The investment com ...

Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.Analyst’s Disclosure:I/we have a beneficial l ...

Giresi to further reinforce Vertiv's digital and AI strategy, in support of executional strength, superior customer experience and operational leverageCOLUMBUS, Ohio, June 3, 2025 /PRNewswire/ -- Vertiv (NYSE: VRT), a global leader in critical digital infrastructure, today announced that Mike Giresi will join the company on June 30, 2025 as global Chief Information Officer (CIO), leading company initiatives in AI adoption across the business, cybersecurity, product security, and digital enabled productivity ...

Core Insights - Investors in Vertiv Holdings Co (VRT) should monitor the stock closely due to significant activity in the options market, particularly the June 20, 2025 $110 Call which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting potential for a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for Vertiv shares suggests that options traders anticipate a notable price movement [4] Group 2: Analyst Sentiment - Vertiv is currently rated as Zacks Rank 3 (Hold) within the Computers - IT Services industry, which ranks in the top 38% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while five have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 91 cents per share to 82 cents [3] Group 3: Trading Strategies - The high implied volatility may indicate a developing trading opportunity, as seasoned options traders often seek to sell premium on options with high implied volatility to capture decay [4]