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 Holdings (VRT) and TE Connectivity (TEL) are significant players in the AI infrastructure sector, providing essential components for data centers [1] - AI infrastructure spending is projected to exceed $200 billion by 2028, presenting substantial investment opportunities for both companies [2] Vertiv Holdings (VRT) - Vertiv's product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions, with organic orders growing approximately 20% in the last 12 months [3] - The company reported a book-to-bill ratio of 1.4 for Q1 2025, indicating strong demand, and a backlog growth of 10% sequentially and 25% year over year, reaching $7.9 billion [3] - Vertiv introduced the CoolLoop Trim Cooler, which offers up to 70% energy savings and 40% space reduction, enhancing cooling solutions for AI applications [4] - The company launched four new systems aimed at improving power efficiency and thermal management in AI-driven data centers [5] - Vertiv's partnerships with companies like NVIDIA and Intel are crucial for its growth [6] TE Connectivity (TEL) - TEL is experiencing growth due to increasing demand for connectivity solutions in AI, automotive electrification, and industrial automation, with orders reaching $4.25 billion, a 6% increase year over year [7] - The company anticipates revenue growth exceeding $700 million in fiscal 2025, driven by strong momentum in AI applications [8] - TEL's digital data networks business saw nearly 80% organic growth in Q2 2025, fueled by demand from hyperscale AI platforms [9] Price Performance and Valuation - Year to date, Vertiv's shares have decreased by 7.1%, while TE Connectivity's shares have increased by 13.6% [10] - Vertiv shares are currently overvalued with a Value Score of D, trading at a forward Price/Sales ratio of 4.02X, compared to TEL's 2.80X and a Value Score of B [14] - Earnings estimates for Vertiv in 2025 are $3.55 per share, reflecting a 24.56% year-over-year increase, while TEL's estimates are $8.19 per share, indicating an 8.33% increase year over year [16] Conclusion - TE Connectivity is positioned as the stronger investment option due to robust growth in AI applications, solid earnings estimates, and attractive valuation compared to Vertiv [17]

Core Viewpoint - Vertiv (VRT) shares have declined 19% year to date, underperforming the broader Zacks Computer and Technology sector and the Zacks Computers - IT Services industry, primarily due to macroeconomic challenges and trade war fears stemming from U.S. tariffs [1][2]. Company Performance - VRT stock has underperformed compared to Eaton (ETN), which has invested over $8 billion in sustainable energy solutions, with Eaton's shares down 11.3% year to date [2]. - Vertiv's organic orders grew approximately 20% in the trailing 12 months, with a book-to-bill ratio of 1.4 for Q1 2025, indicating strong prospects [5]. - The backlog increased by 10% sequentially and 25% year over year, reaching $7.9 billion [5]. Product Portfolio Expansion - Vertiv launched four new systems in March 2025 aimed at AI applications, including Vertiv Unify software and SmartRun modular solutions, enhancing power efficiency and scalability [6]. - The introduction of the Vertiv CoolLoop Trim Cooler offers up to 70% energy savings and 40% space reduction for high-density cooling environments [7]. Strategic Partnerships - Vertiv's partnerships with companies like Tecogen, NVIDIA, and others are key growth drivers [8][9][10]. - The collaboration with Tecogen focuses on advanced natural gas-powered chiller technology for data centers, enhancing cooling solutions [9]. - The partnership with NVIDIA aims to launch a modular AI supercomputer in Italy by 2025 [10]. Financial Guidance - For 2025, Vertiv expects revenues between $9.325 billion and $9.575 billion, with organic net sales growth projected at 16.5% to 19.5% [11]. - The second-quarter 2025 revenue forecast is between $2.325 billion and $2.375 billion, with organic net sales growth expected in the 19% to 23% range [12]. Earnings Estimates - The Zacks Consensus Estimate for second-quarter 2025 revenues is $2.27 billion, indicating a year-over-year growth of 16.48% [13]. - The 2025 earnings estimate is pegged at $3.55 per share, reflecting a 24.56% increase from 2024 [14]. Valuation Metrics - Vertiv is currently trading at a trailing 12-month Price/Book ratio of 12.19X, compared to the sector's 8.90X, indicating it is overvalued [15]. - The company has a Zacks Rank 3 (Hold), suggesting investors should wait for a more favorable entry point [19].

Core Viewpoint - Vertiv (VRT) and Super Micro Computer (SMCI) are key players in the AI infrastructure market, which is expected to exceed $200 billion in spending by 2028, presenting significant investment opportunities for both companies [1]. Company Performance - Vertiv shares have declined 24.2% year-to-date (YTD), while Super Micro Computer shares have increased by 21.7%. Since the 90-day tariff pause on April 9, VRT shares have appreciated 18.3%, compared to SMCI's 1.1% [2]. Vertiv (VRT) Analysis - Vertiv's extensive product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. Organic orders grew approximately 20% in the trailing 12 months, with a book-to-bill ratio of 1.4 for Q1 2025, indicating strong prospects. The backlog increased by 10% sequentially and 25% year-over-year to $7.9 billion [5]. - In March, Vertiv launched four new systems, enhancing capabilities in infrastructure management, modular deployment, advanced thermal management, and DC power distribution [6]. - Strong capital expenditure plans by hyperscalers for data center expansion are favorable for Vertiv. The company expects net sales for 2025 to be between $9.325 billion and $9.575 billion, up from the previous guidance of $9.13 billion to $9.28 billion. The Zacks Consensus Estimate for VRT's 2025 revenues is $9.23 billion, reflecting a year-over-year growth of 15.14% [7]. Super Micro Computer (SMCI) Analysis - Super Micro Computer is experiencing growth due to the increasing deployment of AI and HPC workloads, with rising demand for its high-performance and energy-efficient servers as data centers expand [9]. - The company leads the Direct Liquid Cooling (DLC) market, having shipped over 3,000 DLC racks in 2024, which is approximately 70% of the global DLC market. SMCI is rapidly expanding its production facilities across Malaysia, Taiwan, Europe, and the United States [10]. - Super Micro Computer has a growing partner base, including Intel and AMD, and utilizes Intel Gaudi 3 accelerators for scalable AI tasks. Its H14 Series servers leverage AMD's EPYC 9005 CPUs and GPU-Accelerated Systems utilize AMD's Instinct MI325X GPUs [11]. Earnings Estimates - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $3.55 per share, down by 1.11% over the past 30 days, indicating a 24.56% increase over 2024's reported figure [12]. - For Super Micro Computer, the consensus estimate for fiscal 2025 earnings has declined by 1.2% to $2.52 per share over the past 30 days, suggesting a 14.03% growth over fiscal 2024 [13]. Earnings Quality - Vertiv has consistently beaten the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 10.42%. In contrast, Super Micro Computer has beaten estimates twice and missed once, with a negative surprise of 1.82% [14]. Valuation Comparison - Both companies are considered overvalued, with a Value Score of D. Vertiv shares are trading at a forward 12-month Price/Earnings ratio of 22.57X, while Super Micro Computer's ratio is 11.84X, indicating that SMCI is cheaper than VRT [14][15]. Conclusion - Super Micro Computer benefits from strong momentum from data center and cloud computing clients and is less exposed to tariff concerns compared to Vertiv. Currently, SMCI holds a Zacks Rank 1 (Strong Buy), making it a stronger investment choice compared to Vertiv, which has a Zacks Rank 3 (Hold) [18].