Opinions Andrew Pyle
Vertiv HoldingsVRTDON'T BUYDec 12, 2024
Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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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.
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%.
Stan WongA 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.
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%.
Kim Bolton
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.
Hasn't been around that long, track record not as extensive as others in the AI infrastructure space.
He'd lean toward ARM. Likes the company, following it. Well positioned to extract value out of the AI wave. Now looking for value within the AI space for companies not as expensive as NVDA.