Should You Ignore Vertiv? Why ON Semiconductor May Be The Better AI Infrastructure Stock Today
One stock will suit investors expecting upside potential in hyperscaler spending, while the other offers exposure to the long-term growth prospects of physical AI.
Overview
AI data center infrastructure company Vertiv (NYSE: VRT) and power and sensing chip company ON Semiconductor (NASDAQ: ON) offer investors different approaches to the AI infrastructure market. Vertiv obviously offers more up-front and near-term pure exposure to the AI investment theme, but I think ON Semiconductor offers more long-term upside potential.
Hyperscalers are spending mammoth amounts on building out AI infrastructure, but it's less appreciated that the nature of AI spending will change over time. You can think of it as two heavily overlapping, loosely defined phases.
Details
First, there is the AI build-out phase, during which large language models (LLMs) are built and trained, and inference (running models to power autonomous agents) occurs.
Source
Originally published at www.fool.com.