Vertiv Is Set to Benefit as AI Moves From Hype to the Real Economy
Vertiv is riding the wave of AI data center build-outs. Here's what's driving its surge, what the numbers say, and the valuation risk to watch.
Overview
Vertiv (NYSE: VRT) is getting renewed investor attention as artificial intelligence spending shifts from hype to real-world build-outs. That's because every new data center uses huge amounts of electricity and produces huge amounts of heat.
Without reliable power supplies, robust backup systems, and advanced cooling, the world's most powerful AI chips are basically expensive paperweights. Vertiv sells power and cooling gear that data centers can't run without. That helps explain the 1,070% surge in Vertiv's stock over the past five years as investors chased the infrastructure side of the AI story.
Details
The question for investors today, though, is whether the fundamentals can support more upside from here.
Source
Originally published at www.fool.com.