News about VRT

Vertiv shares jumped 16.48% on Wednesday after its leadership offered bullish comments on the AI market. Third-quarter net sales rose 61% year over year to $4.3 billion, with the Americas, Asia-Pacific and EMEA segments up 75%, 50% and 23%, respectively, as its power and cooling products are increasingly used in AI data centers. Despite concerns that rising debt and higher interest rates could slow construction, CEO Giordano Albertazzi said the infrastructure build-out is accelerating. Adjusted earnings rose 78% to $2.21 per share, above Wall Street's projection of $1.82, while operating and free cash flow climbed 64% and 50% to $794 million and $652 million. Management now expects full-year adjusted earnings to rise 70% to $7.15 per share.

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.

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.