Vertiv Holdings (VRT)

They had an amazing quarter, and the best backlog of any data centre stock, but their 52x PE is too high.

They have an investor meeting on Tuesday, but share are up huge, so it might not matter. 

Liquid cooling solutions for data centres, benefits from AI buildout. This type of picks-and-shovels business is outperforming the data centres themselves.

He's not super-enthusiastic about many of these AI-adjacent companies. They're not super-sophisticated tech that nobody else can do. In the end, there are only 4-5 customers and they have the scale to push prices down. Not interested in adding at current levels.

The price target is $281, and today is $278. This is a classic case of buy high, sell higher.

Tied to the AI story. More data centres means you need stable power and (more importantly) cooling systems. AI data centres are 24/7, and need a lot more computing than traditional computing platforms. Mission-critical infrastructure.

Lots of revenue backlog (~$15B). It goes back to the picks-and-shovels owners will benefit from the big capex spend by hyperscalers. Yield is 0.09%.

It went public through a SPAC merger 6 years ago and has risen 1,950% and been profitable for 5 years. Likes it.

A play on data centre infrastructure. Main product is liquid coolant. Very well positioned with its range of products in the space. Even if coolant division doesn't do as well, rest of products will still be needed. Stock's not cheap, as a lot of upside already priced in. Valuation keeps her away.

Their order book is full. They make the best air conditioners.

The theme today is connectivity in the data centres. Data centres have so many GPUs that they run really hot, so they need a lot of cooling. Leader in air and liquid cooling. Partnerships with all the big firms. It's all about the picks and shovels. 

12-month price target of $198. Buy in thirds here, more at ~$155, and then ~$145. Yield is 0.09%.

Buy, because of the data centre numbers just reported by Oracle. 

Reported a great quarter and has rallied 20%. The data centre crazy isn't dying anytime soon.

Liquid cooling systems. Capitalizing on data centre buildout. Sells the picks and shovels into the long-term secular trend (he's a huge fan of this type of strategy). Inning 4-5 of the infrastructure buildout, with capex numbers moving up. 

Massive opportunity. Trades at lower multiples because margins are a bit smaller and growth is less than NVDA's. Exposure to revenue from data centre systems is higher than peers. Best pure play in manufacturing components within the data centre space.

Geared specifically for data centres. Cooling for computers and for the rooms themselves. Already posted fantastic results.