This data center firm just gave fresh hope for the AI trade — and its stock is soaring

The move:

Vertiv
Holdings
rose as much as 21% on Wednesday, hitting an intraday high of $88.93 per share. The stock is down 29% year-to-date.

The chart:

Why:

The data center firm impressed investors with better-than-expected earnings, rousing hope that artificial intelligence demand is still intact.

Vertiv was among the top
AI trades of 2024
, supplying data centers with equipment to keep AI chips from overheating.

“We continue to see accelerated scaling of AI deployments across the data center market, with strong demand signals reinforcing both our near- and long-term growth outlook,” Giordano Albertazzi, Vertiv’s chief executive, said in a
statement
.

Reporting a 21% jump in product orders since the fourth quarter, Vertiv lifted its midpoint 2025 revenue forecast to a range of $9.33 billion to $9.58 billion, beating estimates of $9.18 billion. It also lifted its second-quarter revenue outlook above consensus.

First-quarter net sales reached $2.04, a 24% jump from the same period last year. Adjusted earnings-per-share reached $0.64, outpacing $0.61 estimates.

What it means:

Vertiv’s estimate-beating report could help revive some enthusiasm for the stock market’s AI trade, which has buckled in 2025.

In recent months, worries have grown that the
data center
buildout is becoming excessive. Meanwhile, serious
AI competition from China
has hampered confidence in US chipmakers and AI hyperscalers.

Despite the challenged environment, Vertiv cited “heightened demand” and noted close project collaboration with
Nvidia
, the dominant AI chip firm.

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Business Insider