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....

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