Vertiv (VRT) stock rebounded after dropping due to Amazon Web Services’ liquid-cooling system development. Analysts believe the sell-off was an overreaction to the news, with Deutsche Bank stating the response was a “knee-jerk reaction.” AWS’s In-Row Heat Exchanger design was said to be a proprietary solution for cooling Nvidia processors.

Vertiv and nVent Electric stocks fell on Thursday, with Vertiv dropping as much as 14.3%. Despite this, Vertiv stock rose 2.1% on the stock market, closing at 123.30, while nVent stock increased by 0.3% to finish the session at 74.87. UBS analyst Amit Mehrotra reiterated a buy rating on Vertiv stock.

Mehrotra stated that fears of AWS development impacting Vertiv sales are unfounded, suggesting a partnership between the two companies. TD Cowen analyst Michael Elias also indicated that Vertiv is a key outsourced manufacturer of Amazon’s IRHX solution. Vertiv stock is listed on the IBD 50 list.

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