From Nasdaq: 2025-06-04 07:07:00

Shares of Vertiv Holdings (NYSE: VRT) surged by 26.2% in May as fears of a slowdown in the AI/data center market proved unfounded. Companies like Nvidia and Microsoft confirmed no signs of a slowdown, boosting confidence in extended capital spending on data center equipment.

Despite initial concerns, the AI/data market remains strong with key customers like Microsoft and Google increasing spending on AI technology. Companies like nVent and Comfort Systems report growing demand for data center solutions, while Nvidia’s recent results confirm continued growth in demand for their products.

With the growth of AI applications driving data center spending, Vertiv’s outlook remains positive. The company is already working on power equipment for Nvidia’s next-gen platforms, set for release in 2027, potentially driving further industry growth.

While Vertiv shows promise, it wasn’t among the 10 best stocks recommended by Motley Fool’s Stock Advisor team. Investors are advised to consider other opportunities, as historically recommended stocks like Netflix and Nvidia have delivered significant returns over time.

Overall, the data center equipment market is poised for growth, supported by strong demand for AI technology and ongoing investments from key players like Microsoft and Google. Vertiv’s strategic positioning and industry trends suggest potential for continued success in the future.



Read more at Nasdaq: Why Shares of Data Center Equipment Company Vertiv Soared in May