halbergman
Thesis
The rise of generative AI is a power-density story first and foremost. Hyperscale customers are already packing well over 100 kW of silicon into a single rack, a ten-fold jump in less than a decade, and industry surveys show
Vertiv: The Quiet Giant Powering Tomorrow's Data Centers
Summary
- Vertiv is uniquely positioned as the essential power and cooling provider for hyperscale AI data centers, with integrated solutions co-developed with Nvidia.
- Liquid cooling is shifting from niche to necessity as rack densities soar, and Vertiv's production-ready portfolio and service contracts drive high-margin, recurring revenue.
- Financials are robust: 24% revenue growth, expanding margins, strong cash flow, and a record $7.9 billion backlog, supporting a bullish multi-year growth outlook.
- Despite tariff and supply risks, Vertiv trades at a discount to peers; I see 35%+ upside as AI adoption accelerates and the market rerates its earnings multiple.
I am a retired quant with a PhD in mechanical engineering. I started off my professional career as an engineer and eventually transitioned into a hybrid developer/quantative analyst role at the investment arm of one of the nation's largest insurance companies.I ended my career as a fixed income specialist, with a strong focus on developing mathematical models for the trading desk. Our investment arm consistently outperformed industry averages and ranks among the top global asset managers for fixed income markets.I have a particular interest in fixed-income and technology equities.
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