Vertiv: Hyperscaler Investments In AI Infrastructure Is Here To Stay

Michael Del Monte
4.94K Followers
(9min)

Summary

  • Data center market resilience and hyperscaler spending position Vertiv for robust growth, supporting my BUY rating and $127/share price target.
  • Vertiv's strong Q1'25 results, improved backlog, and raised guidance highlight persistent demand and operational strength despite macroeconomic uncertainty.
  • Tariff risks may pressure margins short-term, but mitigation efforts, including USMCA coverage should support margin recovery in 2H25.

AI In Box Concept. Conceptual Artificial Intelligence Chip

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The data center remains resilient and positioned for continued growth, driving strong market signals for Vertiv Holdings (VRT). With the major hyperscalers signaling continued data center and compute capacity investments for 2025, Vertiv should

This article was written by

4.94K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VRT, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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