Group 1: Broadcom (AVGO) - Broadcom has quickly entered the AI race with a broad portfolio of technologies, reflecting a strong commitment to next-generation AI infrastructure [2][6] - The company currently offers a dividend yield of 0.8% annually, with a five-year annualized dividend growth rate of 13.3% [2] - Broadcom's free cash flow reached $6.4 billion, showing a 44% year-over-year growth, marking a quarterly record [5] - AI revenue for Broadcom was $4.4 billion, representing a 46% year-over-year increase, with expectations of $5.1 billion in AI sales for the upcoming quarter [8] Group 2: Vertiv (VRT) - Vertiv provides services for data centers and communication networks, focusing on power, cooling, and IT infrastructure solutions [10] - The current Zacks Consensus EPS estimate for Vertiv is $3.82, indicating a 35% year-over-year growth and a 15% increase over the past year [11] - Vertiv's shares yield a modest 0.1% annually, but the company is positioned as a strong growth and yield play [13] Group 3: Investment Outlook - Both Broadcom and Vertiv are identified as dividend-paying tech stocks that, while not high-yield, offer significant potential due to their AI offerings [15] - The bullish outlook for AI revenue in both companies presents an attractive opportunity for income-focused investors [15]

Key Takeaways Vertiv Holdings Co. (VRT) came up with second-quarter 2025 adjusted earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.83. This compares to earnings of $0.67 per share a year ago. VRT posted quarterly revenues of $2.64 billion, surpassing the Zacks Consensus Estimate by 11.86%. This compares to year-ago revenues of $1.95 billion. Vertiv is a leading global provider of critical digital infrastructure and services for data centers, communication networks, and commercial and ...

Core Insights - Artificial intelligence (AI) is a leading market topic, with significant investor interest and exposure opportunities, particularly in the data center sector [1][6] - Vertiv (VRT) and Eaton (ETN) are highlighted as key stocks benefiting from the AI trend, showing strong performance and growth potential [1][6] Vertiv (VRT) - Vertiv provides services for data centers and has seen analysts raise their EPS expectations, with a current Zacks Consensus EPS estimate of $3.55, indicating a 25% year-over-year growth [3] - Revenue estimates for Vertiv are optimistic, with an expected 18% year-over-year sales growth in the current fiscal year, supported by double-digit sales growth in the past four quarters [4] - The company reported a 13% year-over-year growth in Q1 orders and a 21% sequential growth, prompting an increase in sales guidance for the current year [8] Eaton (ETN) - Eaton, an intelligent power management company, reported record Q1 adjusted EPS of $2.72 (up 13% year-over-year) and record Q1 sales of $6.4 billion (up 7% year-over-year) [9] - The company achieved record segment margins of 23.9%, reflecting an 80 basis point increase year-over-year [9] - Eaton has a strong dividend history, with a 7% five-year annualized dividend growth rate and consistent dividend payments since 1923 [12] Market Outlook - The AI trend is expected to persist for years, with companies like Vertiv and Eaton positioned well to capitalize on the ongoing demand in the data center market [6][14]