Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ...

Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ...

Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ...

"As the soaring increase in data usage is driving up power demand and expansion of data centre capacity globally, the need to effectively manage electricity consumption and the carbon footprint of this energyintensive sector is critical to achieve net-zero targets," said Nicolas Pocard, Vice President Marketing and Strategic Partnerships, Ballard. "Ballard and Vertiv's strategic partnership enables both parties to leverage our respective strengths to offer cost-effective, zero greenhouse gas (GHG) emission ...

Much of VRT's bottom-line improvements are attributed to the increasingly rich gross margins of 34.5% (+2 points YoY) in the latest quarter, as supply chain issues moderate, further aided by the higher ASPs. The same expansion has been observed in its adj operating margins of 15.1% (+3.6 points Yo'Y), thanks to the improved operating scale/ productivity and relatively stable SG&A expenses of $314M (+1.7% YoY). As a result of these developments, it is unsurprising that VRT has also raised their FY2024 guidan ...

In the first quarter of 2024, orders jumped 60% year over year while backlog surged roughly 33% to $6.3 billion. Most of these orders will be delivered beyond 2024. For the second quarter of 2024, Vertiv expects revenues between $1.9 billion and $1.95 billion, indicating an organic growth rate of 11-13% year over year. Non-GAAP earnings are expected between 53 cents and 57 cents per share. The Zacks Consensus Estimate for 2024 revenues is pegged at $7.72 billion, indicating year-over-year growth of 12.46%. ...

Thanks to an Nvidia name drop, Vertiv is an object of investor affection right now. Nvidia isn't worried. It has an ecosystem of engineering partners hard at work solving energy delivery and other related data center problems. One such partner that got a name drop from CEO Jensen Huang earlier in 2024 is Vertiv Holdings (VRT -0.36%). The stock could be a buy, if only the price was right. Up until just recently, Vertiv has been a pretty boring industrial energy engineering business. It was spun off from Emer ...

The company's earnings outlook has moved higher across all timeframes, with VRT expected to post nearly 40% year-over-year earnings growth in its current year. Vertiv has continued to capitalize on the AI frenzy, exiting its latest quarter with its highest backlog in company history totaling $6.3 billion. Shares currently yield a modest 0.1% annually, below the average of the Zacks Computer and Technology sector average. The company provided rosy guidance for its current fiscal year, upping its net sales gu ...

Most investors may not have heard of Vertiv, but it contributes significantly to the AI process. Companies like Alphabet, Microsoft, and Nvidia soak up a lot of attention in the artificial intelligence (AI) race -- the first two because they invest in public-facing products, like ChatGPT (Microsoft) and the generative AI chatbot Gemini (Alphabet). And in the case of Nvidia, that's due to its indispensable chips and the stock's incredible performance. But don't forget about what is behind the curtain. A numb ...

Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of $130.03 [23][33]. Core Insights - The company is positioned to benefit significantly from the AI trend and the dual carbon strategy, which is driving upgrades in data center power management and thermal management products. Approximately 75% of the company's revenue in 2023 is derived from data centers, with around 30% from thermal management products [33][101]. - The global data center infrastructure market is projected to grow at a CAGR of 9-12% from 2023 to 2028, with AI-related infrastructure expected to grow at a higher CAGR of 14-17% [114]. - The company has a strong order backlog, reaching $6.3 billion as of Q1 2024, up from $4.8 billion in Q1 2023, indicating robust demand for its products [133][146]. Summary by Sections Section 1: AI Era and Liquid Cooling - The rise of AI applications is increasing the power density in data centers, necessitating advanced cooling solutions. Liquid cooling technology is expected to see significant adoption as AI servers require higher cooling capabilities compared to traditional servers [26][80]. - The company collaborates with NVIDIA to develop liquid cooling systems, which are anticipated to gain market share as the new GB200 NVL systems are released [90][93]. Section 2: Comprehensive Power Products and Stable Service Growth - The company’s power management products are crucial as electrical systems account for 40-45% of data center infrastructure costs. The demand for power products is expected to rise due to increasing AI workloads [105][127]. - Service revenue has shown steady growth, reaching $1.592 billion in 2023, with a year-on-year increase of 7.52% [147]. Section 3: Financial Projections and Valuation - The company forecasts net profits of $633 million, $993 million, and $1.167 billion for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 64, 41, and 35 [33][114]. - The target price of $130.03 is based on a comparison with peer companies, which have an average P/E of 50 for 2025 [33][114].