Vertiv Holdings (VRT) and TE Connectivity (TEL) are key players in the AI infrastructure domain, providing essential components and solutions for data centers. Vertiv specializes in power and thermal management systems, crucial for maintaining optimal conditions in AI-driven data centers. TE Connectivity offers high-speed connectors and sensors that facilitate efficient data transmission and system reliability. Per IDC estimates, AI infrastructure is poised to surpass $200 billion in spending by 2028, offer ...

Vertiv (VRT) 2025 Conference May 14, 2025 08:00 AM ET Speaker0 Welcome to Day two of Bank of America's Industrials and Transportation event. As I said, we are this is year two in the larger format. It's great to see you. I think today is the day of the greatest hits. So we're going to kick it off with the Vertiv CEO, Gio Arbitazi. And we also have Lynn Maxeyner, VP of Global Treasury Investor Relations in the audience. Thank you for being here. Thanks for having me. You know, we weren't joking. You know, yo ...

Vertiv (VRT) FY Conference Summary Industry Overview - The critical digital infrastructure industry is projected to experience a compound annual growth rate (CAGR) of 9% to 12% through 2029, with mid-teens growth anticipated in cloud and colocation sectors [3][4][6] - The demand for data center capacity remains strong, driven by AI advancements and the need for enhanced infrastructure [5][9][22] Core Insights - The company maintains that the growth assumptions from the Investor Day remain valid despite market fluctuations, with a potential for even stronger demand than previously anticipated [4][7][9] - The shift from AI training to inference is noted, with inference expected to grow faster due to its monetization potential [15][17] - The company reported a record quarter for orders, with a year-on-year increase of 13% and a 60% increase compared to the previous year [11][12] Demand Dynamics - The demand for large data centers continues, alongside a rise in smaller, distributed edge data centers [18][19] - There are no significant long-term changes in market dynamics, although short-term adjustments may occur due to resource constraints [21][22] - The company is optimistic about long-term demand, supported by a strong pipeline and industry trends [22][23] Competitive Landscape - New entrants in the market, including sovereign and neo cloud providers, are expanding the industry, but the company does not perceive this as an increase in risk [26][27] - The company employs rigorous credit checks and often requires advanced payments to mitigate risks associated with new customers [28][29] Tariff Impact - The company has not observed any material impact from tariffs on demand, as the demand for AI capacity remains robust [31][32] - There is a focus on maintaining competitive lead times, which may provide opportunities for market share gains amidst tariff uncertainties [37][39] Capital Expenditure (CapEx) Strategy - The company plans to maintain a 25% to 30% capacity headroom versus demand, indicating confidence in future growth [47][50] - CapEx allocation is influenced by geopolitical conditions, but no dramatic shifts in strategy are expected [48][49] Product Innovation and Market Share - Recent product launches, including new chillers and modular solutions, are aimed at increasing market share and addressing customer needs [52][56] - The company is particularly focused on expanding its liquid cooling capacity, which has seen significant growth [61][62] Conclusion - Vertiv is positioned to capitalize on the growing demand for critical digital infrastructure, with a strong pipeline, innovative product offerings, and a strategic approach to managing risks associated with market dynamics and tariffs [9][22][37][61]

Group 1 - The article discusses the potential investment opportunity in Vertiv Holdings (NYSE: VRT), suggesting that the worst may be behind the company and it is well-positioned for future growth [1] - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1] - The author indicates a potential intention to initiate a long position in VRT within the next 72 hours, reflecting a bullish sentiment towards the stock [1]

Vertiv (VRT) shares have plunged 19% year to date, underperforming the broader Zacks Computer and Technology sector’s 10.6% decline and the Zacks Computers - IT Services industry’s fall of 11.8%.Vertiv’s share price has declined due to increasing macroeconomic challenges and U.S. President Donald Trump’s decision to impose tariffs on top trading partners, including China, Mexico and Canada, which has increased the chances of a trade war. VRT stock has underperformed its closest peer, Eaton (ETN) , which is ...

Vertiv (VRT) and Super Micro Computer (SMCI) are well-known providers of artificial intelligence (AI) infrastructure in the data center market. While Vertiv offers power and thermal management products Super Micro Computer provides rack-scale solutions optimized for various AI and HPC workloads as well as IT solutions. Per IDC estimates, AI infrastructure is poised to surpass $200 billion in spending by 2028, offering solid opportunity for both the stocks. However, both Vertiv and Super Micro Computer share ...

Core Viewpoint - Vertiv Holdings Co. reported strong first-quarter 2025 earnings, driven by robust demand for AI infrastructure, leading to a significant stock price increase and raised sales forecasts [2][11][14]. Financial Performance - Net sales for Q1 2025 reached $2.036 billion, a 24% year-over-year increase, surpassing the $1.94 billion consensus estimate [2][3]. - Adjusted diluted earnings per share were $0.64, a 49% increase from Q1 2024, exceeding the $0.62 analyst consensus [3]. - Operating profit rose by 43% to $291 million, with adjusted operating profit growing by 35% to $337 million, resulting in an adjusted operating margin of 16.5% [3]. Demand and Orders - First-quarter orders increased by approximately 13% year-over-year and about 21% from the previous quarter, leading to a book-to-bill ratio of approximately 1.4x [4]. - Vertiv's backlog grew to $7.9 billion, a 10% increase since the end of 2024 and 25% higher than in Q1 2024, attributed to strong market demand, particularly in AI deployments [4][5]. Forecast and Guidance - Vertiv revised its full-year 2025 net sales guidance upward by $250 million, now anticipating net sales between $9.325 billion and $9.575 billion, exceeding the previous outlook and analyst consensus of approximately $9.2 billion [6][7]. - The company maintained its prior full-year guidance for adjusted operating profit and adjusted diluted EPS, indicating potential margin compression due to ongoing international tariffs [7][8]. Market Reaction - The stock price surged following the Q1 earnings report, with shares increasing over 8% by midday on April 24, reflecting strong investor sentiment driven by the AI infrastructure narrative [11][12][14]. - The market's enthusiasm appears to focus on current performance and demand indicators rather than slight variations in Q2 EPS guidance [12][13]. Strategic Positioning - Vertiv's partnerships with companies like NVIDIA and projects such as "iGenius" in Italy highlight its capabilities in the rapidly expanding AI sector [5]. - The underlying growth narrative, supported by secular trends and strategic partnerships, remains compelling despite potential headwinds like tariff uncertainties [15].

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Company and Industry Summary - The analysis is intended for informational purposes only and should not be considered as professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [4]. - The article highlights that the views expressed may not reflect those of the platform as a whole, suggesting a diversity of opinions among analysts [4].

Group 1 - Vertiv Holdings (VRT) is a significant contributor to the global development of AI factories, particularly in providing data center cooling technology [1] - The GPUs essential for AI operations require multiple interoperabilities of various innovative technologies [1]

Vertiv Holdings (VRT) reported first-quarter 2025 non-GAAP earnings of 64 cents per share, which beat the Zacks Consensus Estimate by 3.23%. The figure jumped 48.8% year over year.Net sales increased 24.2% year over year to $2.04 billion, which surpassed the Zacks Consensus Estimate by 6.26%. Net sales on an organic basis increased 25.3% year over year.VRT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.42%. (Find the latest EPS estimate ...