VRT - Vertiv: Partnership With Nvidia And Intel Drives Opportunistic Growth - Wait For Pullback
2024-06-15 10:00:00 ET
Summary
- VRT has been chosen to support NVDA's and INTC's next-gen AI accelerators/ data center systems, with it likely to be a boon to its future top/ bottom-line growth.
- Thanks to the growing demand for higher density computing, there has been an intensified need for improved power management along with liquid cooling at new data centers.
- These reasons have triggered VRT's higher capex to support its growing multi-year backlog, lending visibility into its brighter near-term prospects.
- Despite the promising double-digit growth and attractive risk/ reward ratio, investors may want to wait for a moderate retracement for an improved margin of safety.
The Data Center Investment Thesis Remains Robust In VRT - Thanks To The Growing Market Momentum
We previously covered Modine Manufacturing Company ( MOD ), discussing its rapid upgrade from a small-cap to medium-cap status within a short span of one year, attributed to its well-diversified offerings across thermal management in commercial vehicles, automotive, and data center markets, along with industrial power generation/ transmission....
Vertiv: Partnership With Nvidia And Intel Drives Opportunistic Growth - Wait For Pullback