Industry Overview - The data center cooling market is expected to grow at a CAGR of 12.8% from 2023 to 2030, driven by the demand for coolant architectures for AI and high-performance computing [1]. Company Analysis: Super Micro Computer (SMCI) - SMCI's server and storage revenues are significantly supported by its direct liquid cooling products, achieving a production volume of over 2000 DLC racks per month [3]. - The company launched DLC-2 technology in May 2025, which offers features such as water and space savings, noise reduction, and a potential reduction in electricity costs by up to 40% [4]. - SMCI is currently facing challenges, including delayed purchasing decisions from customers and margin contraction due to increased competition from established players like HPE and Dell Technologies [5]. - The Zacks Consensus Estimate for SMCI's fiscal 2025 earnings is $2.07 per share, reflecting a year-over-year decline of 6.3% [5][6]. Company Analysis: Vertiv (VRT) - Vertiv has a robust thermal management portfolio, providing various cooling solutions that optimize performance and power utilization [7]. - The company is projected to achieve 24.91% EPS growth in FY25, driven by strong demand for AI cooling solutions [7][10]. - Vertiv continues to invest in research and capacity expansion to meet the growing needs of AI infrastructure, including the development of high-density cooling solutions for NVIDIA's platforms [9]. - The Zacks Consensus Estimate for Vertiv's fiscal 2025 revenues is $9.52 billion, indicating year-over-year growth of 18.8%, with earnings estimated at $3.56 per share, reflecting a growth of 24.91% [10][11]. Stock Performance and Valuation - Year-to-date, shares of SMCI have increased by 65.2%, while VRT shares have gained 6.3% [12]. - SMCI is trading at a forward Price to Sales ratio of 1.01X, above its median of 0.83X, whereas VRT is trading at a forward sales multiple of 4.5X, higher than its median of 4.25X [13]. Conclusion - Both SMCI and VRT are benefiting from the growth in cooling technology due to AI workloads and high-performance computing [16]. - However, VRT's financial metrics suggest it is a stronger investment choice compared to SMCI, which currently holds a Zacks Rank of 3 (Hold) versus VRT's 2 (Buy) [16].

Core Insights - Super Micro Computer's stock has surged nearly 10x over the last three years, driven by demand for server systems linked to generative AI, despite facing an 80% drawdown in 2024 due to regulatory concerns and accounting allegations [2] - The company is projected to grow its revenue by nearly 48% to $22 billion in FY'25 and by 35% to around $30 billion in FY'26, supported by strong expenditure on data center services [3][4] - Super Micro's competitive advantages include customizable and energy-efficient products, with expectations that liquid-cooling systems will be installed in 30% of server racks shipped next year [5] Revenue Growth - Super Micro is expected to achieve significant revenue growth, with projections of $22 billion in FY'25 and $30 billion in FY'26, driven by tech companies enhancing AI capabilities [3] - The company is positioned to benefit from Nvidia's increased production of Blackwell GPUs, which will likely boost demand for its servers [3][4] Competitive Position - Super Micro's products are closely integrated with Nvidia's GPU ecosystem, allowing it to quickly provide compatible server systems [4] - The company is enhancing its production capacity and is expected to see a shift towards higher-end products, particularly in liquid cooling technology [5] Margin Improvement - Adjusted net margins are projected to improve from 6.4% in the first nine months of FY'25 to approximately 12% by FY'28, driven by economies of scale and a favorable product mix [7][8] - The company has effectively addressed technical challenges associated with liquid cooling, which may provide a competitive edge in the AI hardware market [8] Valuation and Earnings Potential - If revenues increase by 2.5x and margins double by FY'27, earnings could rise by about 5x, potentially stabilizing the P/E multiple around 10x [9] - This scenario could lead to Super Micro's stock price exceeding $100 per share in the medium term, contingent on continued revenue growth and margin improvement [9]

Chip designers and software giants tend to hog the spotlight in the artificial intelligence (AI) hyper-build. Yet beneath the surface of these household names, a robust ecosystem of less heralded companies is quietly laying the groundwork for AI's explosive growth. These are the "hidden gems" -- businesses with critical, often foundational, contributions that make the AI revolution possible.While many investors flock to the obvious players, shrewd eyes are turning toward those supplying the "picks and shove ...

GARDENA, CA, May 16, 2025 (GLOBE NEWSWIRE) -- Polar Power, Inc. (“Polar Power” or the “Company”) (NASDAQ: POLA), a global provider of prime, backup, and solar hybrid DC power solutions, reports its financial results for the three months ended March 31, 2025. Q1 2025 Financial Highlights ●Net sales were $1.7 million, compared to $1.7 million in the same period last year●Gross profit increased to $320,000, or 18.6% of sales, representing an improvement of 180% from a gross loss of $402,000, or (22.6)% of sale ...

RF Industries, Ltd. (NASDAQ:RFIL) Q1 2025 Results Conference Call March 17, 2025 4:30 PM ET Company Participants Donni Case - Investor Relations Rob Dawson - CEO Ray Bibisi - President & COO Peter Yin - CFO Conference Call Participants Steven Kohl - Mangrove Operator Greetings, and welcome to RF Industries First Quarter Fiscal 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruct ...