Could Vertiv Be the Next Pick-and-Shovel Play for the AI Infrastructure Boom?
Hyperscalers continue to invest massive capital in data centers, and Vertiv has been a major beneficiary.
Overview
Artificial intelligence (AI) infrastructure is booming, and with it comes a surging demand for power and equipment solutions to support these next-generation data centers. AI server racks are becoming so powerful that, according to the International Energy Agency, a single rack in an advanced data center could have a peak power demand equivalent to 65 households by 2027.
With hyperscalers spending up to $700 billion in capital expenditures on the data center build-out this year, investing in "pick-and-shovel" stocks, or companies that provide the essential equipment or services for these data centers, becomes a compelling opportunity.
Details
One such company that investors should have on their radars is Vertiv Holdings (NYSE: VRT), which provides power and cooling infrastructure. As AI reshapes the physical demands of computing, Vertiv's role in keeping data centers operational makes it an intriguing stock for investors looking to capitalize on the AI spending boom.
Source
Originally published at www.fool.com.