Vertiv Holdings (VRT)

Is up 137% this year. Current shareholders will sell on today's sell-off to lock in profits, so don't sell after today's sell-off.

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.

Is number 1 in data centres. Shares are up 151% this year.

The quarter was solid, and ahead of estimates. Guidance was also raised, though not by a huge amount. After some 'selling on news' and profit taking, shares reversed up and hit another new high before the weak Nasdaq market brought them down again. But the performance and outlook remain solid and we would be fine buying some today or in any further decline.
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He added to this recently and a few times. Are expanding North American facilities. They make cooling racks for data centres are expanding to meet insatiable demand. 

He added more shares. There's a huge appetite for data centres and VRT is the top company making the cooling racks for those servers. Shares got cheaper on the recent decline.

They make coolants needed for GPUs, used in data centres and associated with AI. They are caught in this AI downturn, but there will be more demand and centres. He recently bought this and would certainly add on pullbacks. Likes their fundamentals.

VRT reported Q2 EPS of 67c beating expectations of 57c. Net sales came in at $1.95B increasing 12.7% from the prior year and just beat estimates of $1.94B. Guidance was also upped and within range of analyst estimates. Tough comparables from a strong prior year play a factor into the stock's decline, but these look like good results to us and the drop in price may be driven by broader weakness in tech today. The stock is still expensive at 34x forward earnings but we think adding some here is OK as the earnings look solid, while acknowledging that a rotation out of AI names could continue in the short to intermediate-term, but we do not think the long-term demand side of spend for AI is over.
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Everyone has turned on the data centre trade, but he would hold on. It will enjoy the halo effect from Nvidia which rallied today.

It's gone up so much, 77% in the last 6 months, that it's resting now. It could go down even.

AI theme, playing off chips. Data centres and infrastructure. About 70% of business comes from data centres across the globe. As AI and supercomputing get built out, we'll see increased need for data centres and infrastructure. Now in the sweet spot -- always had a good business, but now has a good business that's in high demand. Profits and revenues should continue to expand. Stock price should too, even though it's had a nice move already. Yield is 0.1%.

He sold it before and on the quarter to turn a good profit. Then, NVDA reported their great quarter. So, he bought back Vertiv, because they sell the cooling racks for data centres (NVDA showed growth in this area).

The quarter was solid and ahead of expectations. However, the guidance was only near the mid point of estimates, and after the strong stock run, this 'wasn't enough' for short term investors. Sales guidance still calls for good growth, but EPS guidance of 32c to 36c was short of estimates (37c). But the 4Q showed EPS doubling on a 13% increase in revenue. We are certainly comfortable with that. Debt is declining and margins are robust. AI stocks are seeing selling today but overall things look good here longer term. We would be OK picking away on the buy side. It is not expensive and nothing has really changed. The sector is going to be highly volatile this week with multiple large companies reporting. 
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We do not think a long term investment decision should be dictated by a single quarter. We are comfortable with its outlook and would consider $60 an attractive price. 
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Great chairman. If it had been in the S&P, this would have been the best performer of that index.