So o over a month, Steph, Meta is the only one of the the right in the sweet spot AI stocks that is higher. It's up 3%. Everything else has had decent pullbacks.Coreweave down 7 and a half, Oracle down 10. We we've been saying that this trade is going to be difficult to see stabilization without Oracle and Coreweave stabilizing, right. because they're the ones that are in the eye of the the whole storm.I'm reminded what Apollo's Mark Rowan said in an interview last week about what's happening with some of t ...

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SMCI, DELL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether ...

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the **Data Center Infrastructure** industry, particularly the developments and trends in cooling and power solutions for data centers, with a positive outlook on demand and infrastructure spending [1][4][9]. Core Insights and Arguments - **Strong Demand and Infrastructure Commitment**: The demand for data center infrastructure remains robust, with capital spenders committed to long-term investments, driven by productivity and diverse business models [1][4]. - **Technology Evolution**: Continuous advancements in cooling (CDUs) and power (HVDC) technologies are favoring major players, with larger format solutions becoming more prevalent. Smaller vendors are struggling to compete due to price pressures [1][4][9]. - **Competitive Landscape**: The competition is increasingly concentrated among larger, established players, with a growing moat around successful technology providers. The bear case of disruption and price pressure is being challenged by the emergence of critical partnerships and solutions [1][4][9]. - **AI and Infrastructure**: AI applications are driving demand for data centers, with companies like Microsoft highlighting the need for infrastructure that can support evolving AI workloads. The current demand exceeds supply, reinforcing the need for continued infrastructure investment [9][11]. Company-Specific Highlights Vertiv (VRT) - **Product Offerings**: Vertiv showcased AI-ready racks, modular power solutions, and advanced liquid cooling systems, emphasizing their comprehensive technology portfolio across power, cooling, and modular solutions [5][6]. - **Service Capabilities**: Vertiv has built a significant service organization with over 4,400 technicians globally, enabling them to provide lifecycle services and rapid response to customer needs [11][12]. - **Innovative Solutions**: The introduction of predictive maintenance services and advanced fluid management capabilities positions Vertiv as a leader in optimizing data center operations [12][11]. - **Power Management**: Vertiv is actively supporting the transition to 800V power systems, which will enhance efficiency and scalability for future data center architectures [13][9]. nVent - **New Product Launches**: nVent introduced a new portfolio of modular data center liquid cooling solutions, emphasizing reliability and user experience through a common control platform [18][19]. - **Market Positioning**: The company is participating in initiatives like Project Deschutes to accelerate liquid cooling adoption, positioning itself as a key player in the evolving data center landscape [20][19]. Motivair (Schneider Electric) - **Growth Projections**: Motivair is expected to achieve around $300 million in revenues, reflecting over 100% growth from the previous year, driven by its end-to-end liquid cooling portfolio [22]. - **Integration with Schneider**: The integration with Schneider Electric enhances Motivair's capabilities in deploying optimized electrical infrastructure alongside liquid cooling solutions [22]. Modine - **Innovative Chiller Design**: Modine announced a new stainless steel variant of its TurboChill DCS chiller, designed for high-pressure environments and optimized for liquid cooling systems [26]. - **Market Demand**: The company is experiencing strong demand, with significant orders anticipated from innovative hyperscalers, projecting potential revenues in the $250 million range [26]. Eaton - **HVDC Transition**: Eaton is preparing for the HVDC transition with new products and technologies that will support future data center power needs [27][28]. Boyd - **Advanced Cooling Technologies**: Boyd showcased its Chip to Ambient thermal circuit, designed to optimize energy consumption in liquid cooling systems for AI applications [29][30]. Additional Important Insights - **Market Dynamics**: The data center infrastructure market is witnessing a shift towards larger, more efficient cooling solutions, with significant growth expected in the adoption of CDUs and liquid cooling technologies [36]. - **Collaboration and Partnerships**: Companies are increasingly forming partnerships to enhance their product offerings and address the challenges of high-density computing environments [19][22]. - **Future Trends**: The industry is moving towards more integrated solutions that combine power and cooling, with a focus on modularity and scalability to meet the demands of modern AI workloads [25][29]. This summary encapsulates the key points discussed during the conference call, highlighting the positive outlook for the data center infrastructure industry and the strategic positioning of major players within it.

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Investment Rating - The report maintains an "Overweight" rating for the technology sector [5] Core Viewpoints - The AI-driven data center construction continues to show growth potential, with major tech companies increasing their capital expenditures significantly [1][2] - SMCI's recent financial performance has not aligned with the strong industry trends, indicating potential issues with its shipment policies and management credibility [2] - The introduction of new liquid cooling systems and AI products by SMCI is expected to enhance its competitive position in the market [3] Summary by Sections Section 1: Industry Investment Rating - The technology sector is rated as "Overweight," indicating expectations for the sector's stock index to outperform benchmarks [5] Section 2: AI Infrastructure Growth - Major tech companies like Google, Meta, Microsoft, and Amazon have shown substantial year-on-year increases in capital expenditures, with growth rates of 43%, 104%, 53%, and 74% respectively, reaching $172 billion, $137 billion, $167 billion, and $243 billion [1] - IDC forecasts a CAGR of 16.3% for the AI server market over the next five years, while the data center market is expected to grow at a CAGR of 15-17% [1] Section 3: SMCI Financial Performance - SMCI's FY25Q3 revenue was $4.59 billion, a year-on-year increase of 19%, but a quarter-on-quarter decrease of 19% [1] - Non-GAAP EPS for FY25Q3 was $0.31, down 53% year-on-year and 47% quarter-on-quarter [1] - The company has lowered its FY2025 revenue forecast from $23.5-25 billion to $21.8-22.6 billion due to uncertainties related to tariffs [1] Section 4: Product Development - SMCI launched the HGX B300 NVL16 and GB300 NVL72 systems, which support both air and liquid cooling, with significant enhancements in performance and energy efficiency [3] - The new products include advanced features such as high-speed interconnects and improved thermal design, which can reduce overall energy consumption by up to 40% [3]

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Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].