The article says Vertiv (VRT) shares have risen strongly on the data center and AI infrastructure wave, with a five-year return of about 660%. A discounted cash flow (DCF) model estimates latest twelve-month free cash flow at about $3.0 billion and an intrinsic value meaningfully above the $194.32 share price. New AI factory partnerships with NVIDIA and Dassault Systèmes, plus a sizeable order backlog tied to AI data center projects, are cited as factors that could affect how fast cash arrives and how much investment is needed. The piece also notes a P/E of 43.2x and asks whether the current price is fully supported by the cash flows implied in the DCF estimate.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
data centersvaluationartificial intelligence
Open a keyword to see other news on the same topic.
Related news
- Vertiv (VRT) stock is up, what you need to know
Vertiv (NYSE:VRT) shares rose 4.2% to $212.74 in the afternoon session after the company and NVIDIA launched an AI factory framework at NVIDIA GTC Berlin, pairing pre-engineered reference designs with factory-built deployment to target up to 30% higher cumulative AI token output in the first 12 months. Polar Data Centers is implementing the architecture for the first 41-megawatt phase of its facility in Herøya, Norway. The article says the market sees the news as meaningful but not one that fundamentally changes its view of the business, given the stock has had 45 moves greater than 5% over the past year. Earlier, GLJ Research initiated coverage with a Sell rating and a $188 price target, and the shares remain 43.5% below their 52-week high of $376.23.
- Amazon Stock And Other Mega Cap Tech Names For The AI Infrastructure Reset
AI infrastructure stocks have just sold off hard even though earnings and backlogs still look solid, and the article argues this indiscriminate selling could open opportunities for patient investors watching Microsoft, Alphabet and Amazon. It profiles three related stocks: Arrow Electronics, with about US$25.4b in Global Components revenue and US$10.5b from Global ECS, ECS billings above US$6.4b in Q1 2026, and a backlog more than 75% higher year over year by Q2 2026. Ciena, an optical networking hardware provider, generates about US$4.8b from Networking Platforms, and the article says its addressable market could roughly double to about US$50–52b by 2029. Dynatrace, an AI-powered observability platform, generates about US$2.1b in revenue, and management says customers moving to its DPS model increase usage and spending by 2x.
- Will AI Fiber Demand Change Corning (GLW) Narrative
Corning presented fiber optics and high-density connectivity for AI data center infrastructure at the OCP Global Summit 2026, backed by long-duration supply agreements with Amazon, NVIDIA, Meta and Verizon. Analyst consensus expects revenue to grow 20.1% a year over the next three years, with profit margin rising from 11.2% to 19.3% by around 2029 and earnings from about US$1.9b to US$5.7b. The 2029 revenue target is US$29.4b, with a projected P/E of 37.9x versus about 72.0x today. The current price is US$158.71 and the consensus target is US$189.94, implying 16.4% upside, within a target range of US$129.00 to US$238.00. The article highlights the October 27 earnings release and execution risks, equity dilution and the solar business.
- Corning (GLW) Stock Could Be 31% Below Fair Value As AI Fiber Demand Builds
Corning shares have risen 436.5% over the past three years on AI infrastructure demand, raising the question of whether the current price of $134.92 is backed by its cash flows. The article's discounted cash flow model, based on about $2.5b in latest twelve-month free cash flow and projected growth through 2030, gives an intrinsic value above the current share price. It argues that the long-term Meta supply agreement and AI data center work shown at the 2026 OCP Summit may already be largely reflected in the stock. The piece also points to Corning's 61.2x P/E as a different valuation view and directs readers to Simply Wall St Narratives to compare the assumptions behind the price.
- Bloom Energy Is Down 36% From Its June Record. Should You Buy Before Thursday's Report?
Bloom Energy shares closed at about $223 on October 20, down roughly 36% from their June 22 record close of $345.85, but still up about 156% this year as AI data centers use its fuel cells for on-site power. The company reports third-quarter results after the market closes on Thursday, October 22. Bloom has raised its 2026 revenue outlook twice, most recently to $3.9–4.2 billion after second-quarter revenue of $1.07 billion. However, the guidance implies only about $1.04–1.19 billion per quarter in the second half, slightly below the second quarter's total. The author calculates the stock at about 82 times expected 2026 earnings using the midpoint of management's adjusted EPS forecast, and believes the valuation already prices in much optimism. The author would reconsider if the new forecast shows second-half revenue clearly above the second quarter's $1.07 billion.
- Where Will Vertiv Stock Be in 1 Year ? | The Motley Fool
Vertiv (VRT), a supplier of cooling and power systems for data centers, hit a record $376.06 on May 14 on AI-driven demand, but now trades near $211. Its revenue rose from $5.0 billion in 2021 to $10.2 billion in 2025, and adjusted EPS from $0.76 to $4.20, with a $15 billion backlog at the end of Q2 2026. For 2026, it expects revenue to grow 37% to $14 billion and adjusted EPS to rise 60%, and the stock trades at 31 times that estimate. The pullback reflects a slight miss on Q2 revenue estimates, a $1.45 billion cash acquisition of UtilityInnovation Group that may pressure near-term margins, and rising interest rates that compressed valuations of high-growth AI stocks. If Vertiv meets analyst expectations and trades at 30 times earnings by next October, the article estimates its stock could rise about 30% to $276, still below its record high.
Related markets
Latest news
- The Paradox of Ha Tinh, the Second-Fastest-Growing Province, Where FDI Giants and the Vin Group Converge
Ha Tinh recorded 12.36% GRDP growth in the first nine months of 2026, ranking second nationally, mainly driven by industry and large complexes such as Formosa. Formosa paid VND 74,400 billion in taxes over 2015–2025, while workers in the province's economic and industrial zones rose from 19,500 in 2021 to 29,100 in 2025. Enterprise net revenue reached VND 806,537 billion in 2021–2025, but the share of profitable businesses fell from 60% in 2011–2015 to 43%. FDI firms accounted for 55% of revenue but contributed only about VND 25 billion of profit, with most profit coming from domestic private firms. The plan also notes weak links between local firms and FDI or large enterprises, while 98% of the 10,850 operating businesses are small and medium-sized.
- Is Nike Still a Growth Stock? Here's the Answer.
In its first-quarter fiscal 2027 report, Nike's revenue fell 4% year over year to $11.2 billion and net income slid 2% to $712 million, as its turnaround plan continues. Converse sales dropped 28% to $263 million and Greater China sales fell 22% to $1.1 billion, while North American wholesale sales rose 9% to $2.9 billion. The article argues Nike is no longer a growth stock, since revenue was $12.3 billion in the fourth quarter of 2021, a 96% increase, and it may instead look more like an income stock. It still pays a dividend yielding 4.3%, and CFO David Denton said the company can maintain and grow the dividend over time, with $8.3 billion in cash against $11.1 billion in debt. The author would want to see sales declines reverse before investing.
- Broadcom vs. Dell Technologies: Which Stock Is AI Powering to Be a Better Buy in 2026?
The article compares Broadcom, a maker of networking chips and infrastructure software, with Dell Technologies, which sells servers, storage and PCs, as both benefit from AI demand. Broadcom posted revenue of about $63.9 billion in its fiscal year ended Nov. 2, 2025, up roughly 23.9%, with net income near $23.1 billion. Dell reported about $113.5 billion in revenue for the year ended Jan. 30, 2026, up roughly 18.8%, but its net margin was about 5.2%, versus Broadcom's close to 36.2%. The article flags Broadcom's customer concentration and Dell's competition and reliance on third-party manufacturers as key risks, and says Dell appears cheaper on forward P/E and price-to-sales.
- Bloom Energy Raised Its 2026 Forecast for the Third Time. Is the Stock a Buy More Than a Third Below Its Record?
Bloom Energy reported record third-quarter revenue of $1.24 billion, up 138% year over year, and raised its 2026 revenue forecast to $4.4 billion–$4.6 billion for the third time this year. Despite the results, shares fell about 9% to $217.77 on Oct. 22 and dropped to roughly $203 after hours, still about 37% below the June 22 record close of $345.85. The weak spot was cash: operations used $27 million in the third quarter, contract assets (revenue booked but not yet billed) rose to $793 million, and free cash flow was negative $181 million. The author says the stock now looks cheaper relative to the raised earnings forecast and could be considered for gradual investment, but wants to see contract assets convert to cash before increasing the position more aggressively.
- Apple Joins Nvidia in the $5 Trillion Club. Here's Which Stock I Think Can Get to $10 Trillion First.
Apple has joined the $5 trillion market-cap club after recent stock gains, while Nvidia remains slightly larger at $5.13 trillion. The author expects Apple to reach $10 trillion first, arguing it is a lifestyle brand with strong customer loyalty: iPhone owners account for about half of Apple's sales, 87% of current iPhone owners say their next smartphone will also be an iPhone, and Apple-made devices in use reached a record 2.5 billion. Nvidia trades at about 14 times next year's expected profit of $15.91 per share, which may reflect a headwind in its AI business, since data centers account for roughly 90% of its revenue and competitors such as AMD and Qualcomm are rising. The article notes that either company could reach the milestone first and that both can perform well.
- Inflation Is Running Hotter Than Expected. That Could Be Bullish for Bitcoin.
Consumer prices rose 3.7% in the 12 months through September 2026, and Bitcoin fell about $1,000 after the hotter-than-expected October 14 report, as higher inflation raises the odds of Federal Reserve rate hikes. The article argues Bitcoin is not necessarily well suited to hedge rising costs: producer prices jumped 6.3% over 12 months, and squeezed consumers may invest less in riskier assets like Bitcoin. However, J.P. Morgan Asset Management views Bitcoin as a bet that governments will keep creating money, and U.S. M2 money supply grew 5.7% in the year through August 2026. If the Fed cuts rates while prices keep climbing, Bitcoin's fixed supply could serve as an inflation refuge, and the author says the next few quarters will test this thesis.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.