VRT - Vertiv: Liquid Cooling Isn't Enough
2024-06-14 04:59:41 ET
Summary
- Vertiv has experienced significant stock gains due to AI data center demand, but the company isn't projecting massive growth in the future.
- Liquid cooling technology is all the rage in data centers, but the company is ramping capacity ~45x without any material change in targeted growth rates.
- VRT stock is likely to rally back to previous highs of around $110, presenting an opportunity for investors to unload Vertiv after substantial gains.
Vertiv Holdings Co ( VRT ) has seen one of the largest stock gains due to the booming AI data center demand. The data center infrastructure provider isn't actually guiding towards massive growth in the years ahead, despite a big jump in orders and backlog. My investment thesis is Bearish on the stock long term, but the recent trading action suggests Vertiv rallies back to the previous highs around $110, where the stock should likely be unloaded....
Vertiv: Liquid Cooling Isn't Enough