Summary of Vertiv Holdings Co. Conference Call Company Overview - **Company**: Vertiv Holdings Co. (VRT.N) - **Market Cap**: $97,080 million - **Current Stock Price**: $248.51 (as of February 11, 2026) - **Price Target**: Increased from $200.00 to $285.00 Key Industry Insights - **Data Center Capex**: Vertiv's revenue growth has been slower compared to US data center construction and hyperscaler capital expenditures over the past five years, but there are indications of a potential catch-up due to order inflation in the second half of 2025 [2][3] - **Order Growth**: Vertiv reported a 250% increase in orders, significantly exceeding expectations, with a notable order inflection of 120% compared to the previous quarter [3] - **Market Position**: The company is positioned to outperform due to its innovation leadership and expanding service opportunities, with expectations of continued order growth into 2026 [3][9] Financial Performance - **Q4 Orders**: Vertiv generated $8.1 billion in orders during Q4, leading to a quarterly average of $4.2 billion for 2025 [13] - **Sales Guidance**: For fiscal year 2026, sales are guided at $13.5 billion, which is approximately 25% below the 2025 order intake, indicating potential upside as the market adjusts [11][31] - **Earnings Per Share (EPS)**: EPS estimates for 2026 have been raised to $6.06 from $5.76, reflecting strong order strength and backlog build [31] Margins and Growth Projections - **Operating Margins**: The company expects operating margins to improve, with Q4 margins showing a 39% year-over-year increase [11][25] - **Organic Growth**: Projected organic growth rates are around 29% for 2026, with expectations of continued strength in demand and backlog into 2027 and 2028 [31][38] Competitive Advantages - **Innovation and Efficiency**: Vertiv's solutions are critical for hyperscalers, addressing power constraints and enhancing efficiency, which solidifies its competitive position in the market [9][12] - **Service Revenue Growth**: The service segment is expected to accelerate, providing additional durability to top-line and margin performance [18][52] Risks and Market Sentiment - **Market Concerns**: There are concerns regarding the sustainability of order levels and potential headwinds from timing favorability and lead time extensions [10][12] - **Investor Sentiment**: The market has not fully capitalized on the leading edge order strength, which may present an opportunity for investors as demand continues to grow [10][12] Conclusion - Vertiv Holdings Co. is positioned for significant growth driven by strong order inflows, innovative solutions, and a robust service business. The raised price target reflects confidence in the company's ability to capitalize on the accelerating data center capex cycle, despite potential market volatility and concerns about order sustainability.

Core Insights - Nvidia has a significant backlog of booked business amounting to $500 billion for 2025 and 2026, indicating strong future revenue growth potential [2][3] - The company is expected to grow its data center revenues by nearly 20% sequentially each quarter until the end of 2026, which is not reflected in current consensus expectations [3][4] - Major customers like Amazon, Google, Microsoft, and Meta are planning substantial capital expenditures that align with Nvidia's growth trajectory [4] Supply Chain Considerations - Potential supply bottlenecks exist in GPU manufacturing, particularly concerning high-volume memory and packaging, but Nvidia has worked to secure supply [5][6] - Issues related to AI shell rollouts are currently isolated and not expected to significantly impact Nvidia's largest customers due to their diversified partnerships [6] - Power supply concerns are mitigated by efficiencies throughout the supply chain, suggesting no major supply issues for 2026 [7] Stock Performance Outlook - Despite a 40% increase in stock value this year, Nvidia's stock has historically declined after earnings beats, indicating high expectations [8] - If Nvidia delivers on its booked business, earnings could approach $9 next year, with the stock currently trading at low 20s multiples [9] - Visibility into future growth is strong, with Amazon planning to double its data center footprint by 2027, suggesting continued optimism beyond 2026 [10] Long-term Investment Landscape - The global economy has the capacity to absorb over $3 trillion in data center capital expenditures, with current spending at half a trillion for the top four hyperscalers [13][14] - There is potential for global data center spending to grow tenfold by 2035, provided productivity gains continue [15] - Concerns about potential margin compression and investment slowdowns exist, but the overall outlook remains positive for the data center sector [15] Market Sentiment - Recent sales of Nvidia shares by Soft Bank and Peter Thiel have raised questions, but these moves are seen as reallocating investments rather than a negative signal for Nvidia [16][17]

(v) This author is a registered US equity research analyst who is subject to US FINRA Rule 2241 and who may write debt research under FINRA Rule 2242. Please see analyst certifications and important disclosures beginning on page 22. Completed: 24-Sep-25, 22:15 GMT Released: 25-Sep-25, 04:00 GMT Restricted - External SIGNATURE Equity Research 25 September 2025 Equity Strategy Lost My Chain-of-Thought: Could the AI narrative stumble? We remain constructive on AI as an investment theme, but explore some 'what- ...