Summary of Key Points from the Conference Call on 800 VDC Shift Industry Overview - The report focuses on the **data center industry** and the transition to **800 VDC (Volts Direct Current)** architecture, driven by the increasing power demands of AI training and inference workloads [2][12][56]. Core Insights and Arguments 1. **Adoption Timeline**: - 800 VDC adoption is expected to begin with NVIDIA's new platforms, Rubin Ultra and Feynman, launching in **2027 and 2028** respectively. It is projected that **10%** of AI training additions will adopt 800 VDC in **2027**, increasing to **80%** in **2028**, and reaching **100%** from **2029** onwards [3][4]. 2. **Market Impact**: - By **2030**, it is estimated that **15%** of global data center capacity and **25%** of GW additions will feature 800 VDC. The adoption will phase in as follows: **5%** in **2027**, **35%** in **2028 & 2029**, and **45%** in **2030** [4][39]. 3. **Electrical Content Changes**: - The transition will involve three phases of electrical content change, significantly reducing reliance on legacy AC equipment. Phase 1 will see a **-40%** reduction in AC PDUs by **2030**, Phase 2 will reduce UPS for IT loads by **-60%**, and Phase 3 will replace switchgear and transformers with solid-state transformers, leading to reductions of **-25%** and **-80%** respectively [5][27]. 4. **Growth Opportunities**: - Despite the challenges, three growth opportunities are identified: - New 800 VDC equipment, including sidecars and solid-state transformers. - Liquid cooling systems that scale with power density. - Automation technologies that enhance power, thermal, and compute management [6][10]. 5. **UPS Market Outlook**: - The UPS market is expected to grow at a low double-digit CAGR over the next five years, despite a **-60%** reduction in the total addressable market (TAM) for UPS related to IT loads by **2030**. UPS for thermal loads linked to liquid cooling distribution units is projected to grow at approximately **30%** per annum [7][10]. 6. **Net Impact on Growth**: - The overall impact of the 800 VDC shift is projected to be modestly negative, with a **<2pp** annual headwind to growth by **2030**. The shift is expected to result in a **-12%** reduction in TAM, equating to **-$0.65B/GW** from an all-in **$5.5B/GW** [8][40]. Additional Important Insights 1. **Investment Implications**: - Companies with exposure to liquid cooling and UPS businesses, such as **Schneider**, **Eaton**, and **Vertiv**, are viewed positively. Automation is also highlighted as a critical area for growth due to the increasing complexity of AI data centers [10][45]. 2. **Key Players Affected**: - Companies like **Schneider**, **Eaton**, and **ABB** are expected to be significantly impacted by the 800 VDC transition, with a need to develop solid-state transformer capabilities to remain competitive [10][50]. 3. **Market Dynamics**: - The report emphasizes the importance of understanding the evolving landscape of data center architecture and the potential for new entrants and technologies to disrupt traditional suppliers [10][50]. 4. **Safety and Regulatory Considerations**: - The transition to 800 VDC presents operational and safety risks, necessitating new certifications and standards, which could impact the speed of adoption [83][84]. 5. **Future Projections**: - The report anticipates that the 800 VDC architecture will become increasingly relevant for inference workloads post-2030, primarily due to efficiency gains rather than immediate power density requirements [92][93]. This summary encapsulates the critical insights and projections regarding the shift to 800 VDC in the data center industry, highlighting both the challenges and opportunities that lie ahead.

Core Insights - EdgeMode has entered into a Memorandum of Understanding (MOU) with Supermicro and Krambu Inc. to enhance its AI data-center portfolio through advanced infrastructure and sustainable technologies [1][2][4] Group 1: Collaboration Details - The MOU aims to explore a coordinated supply and deployment model for high-density server and GPU infrastructure, leveraging Supermicro's solutions and Krambu's expertise in sustainable design [2][3] - The partnership focuses on high-efficiency AI infrastructure and sustainable design, including waste heat recapture for various applications, aligning with global carbon optimization efforts [3][4] Group 2: Strategic Positioning - EdgeMode is developing a next-generation data-center portfolio that integrates renewable power and high-density compute capabilities, positioning itself as a leader in AI-ready infrastructure [4][9] - The collaboration enhances EdgeMode's ability to deliver energy-efficient AI compute solutions at scale, supported by Supermicro's technology and Krambu's sustainability expertise [4][6] Group 3: Implementation Framework - Supermicro will provide end-to-end AI compute solutions, while Krambu will manage infrastructure design and sustainable practices, including liquid cooling and waste-heat reuse [6][7] - EdgeMode will act as the purchaser and operator, integrating advanced hardware into its expanding 1.5 GW AI-focused data-center portfolio across five strategic sites [6][9]

Core Insights - Vertiv (VRT) is experiencing significant growth due to the global acceleration of data centers, driven by AI adoption and increasing demand for digital infrastructure [1][2] - The company reported a 43% organic sales growth in the Americas and a 21% year-over-year growth in APAC for Q3 2025 [1] - Vertiv's backlog increased by 12% sequentially and 30% year-over-year to $9.5 billion, supported by a book-to-bill ratio of 1.4 [2][10] Financial Performance - In the trailing 12 months, organic orders grew approximately 21% [2] - The consensus estimate for 2025 earnings is $4.11 per share, reflecting a 44.21% increase from 2024 [13] - Vertiv's shares have gained 61.3% over the past six months, outperforming the broader Zacks Computer & Technology sector, which appreciated 26.6% [8] Product and Acquisition Strategy - Vertiv's extensive product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions [3] - The recent $1.0 billion acquisition of PurgeRite enhances Vertiv's capabilities in liquid cooling and thermal management [3][10] - The acquisition combines Vertiv's thermal expertise with PurgeRite's flushing, purging, and filtration capabilities, improving system performance for AI data centers [4] Competitive Landscape - Vertiv faces increasing competition from Super Micro Computer (SMCI) and Hewlett Packard Enterprise (HPE), both expanding their data center capabilities [5][6] - Super Micro Computer is focusing on end-to-end AI rack-scale systems, while HPE is enhancing its offerings with liquid-cooled solutions [6][7] - These competitors are strengthening their positions in the hyperscale and enterprise AI data center market, posing challenges to Vertiv's role [7] Valuation Metrics - Vertiv's stock is trading at a trailing 12-month Price/Book ratio of 19.44X, compared to the sector average of 10.81X [11] - The company currently holds a Zacks Rank 1 (Strong Buy) [13]

Group 1 - The presentation features Amit Mehrotra from UBS Investment Bank and Paulo Ruiz, CEO of Eaton Corp, indicating a focus on Eaton's performance and future direction under Ruiz's leadership [1][2] - Discussion topics include Eaton's developments in data centers, power solutions, and liquid cooling technologies, highlighting the company's strategic initiatives [2] Group 2 - The event aims to be interactive, encouraging audience participation to discuss Eaton's trajectory and plans for 2026 [2]

Group 1: AI Infrastructure Investment - The AI infrastructure segment is experiencing significant momentum, with a projected capital expenditure of $380 billion by four major companies in 2025, representing a 54% year-over-year increase in spending on the AI ecosystem [1] - The demand for data center capacity is surging due to the growth of cloud computing, indicating a robust market for AI-related investments [2] Group 2: Recommended Stocks - Five stocks are recommended for long-term investment due to their direct or indirect benefits from the AI boom: Vertiv Holdings Co. (VRT), Mirion Technologies Inc. (MIR), Comfort Systems USA Inc. (FIX), Celestica Inc. (CLS), and Corning Inc. (GLW) [2] - These recommended stocks have shown significant price increases this year and are expected to continue growing following strong third-quarter earnings results [3] Group 3: Vertiv Holdings Co. Performance - Vertiv Holdings has a Zacks Rank of 1, with a third-quarter performance driven by a diverse product portfolio, including thermal systems, liquid cooling, and modular solutions [4] - The company reported a 35% sales growth, attributed to strong market demand and enhanced capabilities to meet complex infrastructure needs [5] - Vertiv is expanding its capacity to support AI-enabled pipelines, benefiting from the digital transformation driven by AI and data center demand [5] Group 4: Strategic Partnerships - Vertiv's partnership with NVIDIA Corp. is a significant catalyst for growth, aiming to provide efficient power solutions for next-generation AI data centers [7] - The company is focused on staying ahead of GPU advancements to support the scaling of AI deployments in high-performance data centers [7]

Core Insights - Eaton Corporation plc (NYSE:ETN) announced a significant acquisition of Boyd Corporation's thermal business for $9.5 billion, enhancing its position in the data center sector [2] - The acquisition focuses on liquid cooling technology, which is essential for preventing overheating in data centers, indicating a strategic shift towards next-generation cooling solutions [2] - Boyd Thermal is projected to generate sales of $1.7 billion by 2026, with $1.5 billion coming from liquid cooling, highlighting the growth potential for Eaton in this market [2] Company Overview - Eaton Corporation is an industrial equipment company specializing in power management and delivery products [2] - The company is recognized for its strong presence in the data center industry, which is expected to benefit from the acquisition of Boyd's thermal business [2] Market Implications - The acquisition is anticipated to positively impact Eaton's stock performance, as it deepens the company's footprint in the data center market [2] - The deal is seen as a strategic move to align with the growing demand for advanced cooling solutions in data centers, which is critical for their operational efficiency [2]

Core Viewpoint - Eaton, a power management company, is acquiring Boyd Corporation for $9.5 billion, enhancing its position in the data center market [1][4]. Company Summary - Eaton is focused on expanding its footprint in the data center sector through the acquisition of Boyd Corporation, which specializes in thermal cooling solutions [1][3]. - Boyd Corporation's thermal business is crucial for preventing data center overheating, with a significant emphasis on liquid cooling technology [2][4]. Industry Summary - The data center industry is experiencing growth, with liquid cooling becoming increasingly important for next-generation data centers [3][4]. - Boyd Thermal is projected to generate sales of $1.7 billion by 2026, with $1.5 billion coming from liquid cooling solutions, indicating a strong market demand [4].

Investment Rating - The report assigns a "Buy" rating to several companies within the Taiwan Technology sector, including Wiwynn, Wistron, Hon Hai, Gigabyte, and various AI server components [25]. Core Insights - The Taiwan Technology sector is experiencing strong growth in ASIC AI servers and related components, with notable revenue increases reported by key players such as Wiwynn (+187% YoY) and Gigabyte (+108% YoY) [1][8]. - The report highlights a transition in server models expected in 3Q25, with a cautious outlook on rack-level AI server shipments due to macro uncertainties [9]. - The demand for components like liquid cooling, silicon photonics, rail kits, and chassis is anticipated to rise, driven by specification upgrades and the increasing adoption of AI technologies [9][10]. Summary by Sections ASIC AI Servers and Components - ASIC AI servers are showing robust growth, with Wiwynn's revenues up 187% YoY, significantly exceeding estimates [1][8]. - Baseboard-based AI servers also demonstrate strong performance, with Gigabyte achieving 108% YoY revenue growth [1][8]. - Liquid cooling solutions are gaining traction, with AVC reporting 87% YoY revenue growth [1][8]. Market Outlook - The report expresses caution regarding rack-level AI server shipments in the second half of 2025, while maintaining a positive outlook for ASIC and baseboard-based AI servers [9]. - The global market for AI servers is projected to reach 19,000 racks by 2025, indicating a significant growth opportunity [9]. Non-AI Sector Insights - The smartphone supply chain is expected to strengthen in 3Q25, with new high-end models being prepared for launch [10]. - AI PCs are anticipated to see continued penetration, with brands like ASUS and Lenovo leading the charge [10]. Investment Opportunities - Recommended investments include AI server ODMs and brands such as Wiwynn, Wistron, Hon Hai, and Gigabyte, as well as components like AVC, Fositek, and LandMark [11].