Quentinvest Alert – Vertiv Holdings

There were two exciting shares with similar businesses: Vertiv Holdings and Super Micro Computer. I alerted both but went in hardest for the faster-growing Super Micro. This was the wrong choice, as SMCI shares have plummeted on concerns about their accounting standards. Using a selling strategy that I am currently working on, SMCI gave a clear sell signal at $41.50 and very likely higher.

SMCI shares rallied over 31pc yesterday to $28.27 so may be on the mend. No buy signal yet but we shall see. By contrast, Vertiv is still very much a buy.

The shares rallied strongly yesterday after a two-hour presentation to analysts and investors on 18 November, which is a good sign. I will know more once I have listened to the presentation. The shares may also have been encouraged by an announcement.

 Vertiv (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, today announced a significant expansion of its liquid cooling product portfolio with the introduction of two new Vertiv™ CoolChip CDU (coolant distribution unit) systems. These systems enable modular, cost-effective liquid cooling deployments in data centres, making it possible to operate high-density computing for AI alongside traditional air-cooled racks. The new CDUs are on display at the Vertiv booth at SC24, the international conference for high performance computing, networking and storage, from November 19 – 22.

Vertiv, investor relations, news, 19 November 2024

Vertiv is an important company with a huge role to play in the AI revolution.

The company is on a roll and expects the good times to continue for the foreseeable future. Modern data centres powerful enough to support Generative AI consume vast amounts of energy and give off huge amounts of heat. Vertiv is involved with solutions to both these problems and may well see growth accelerate in the future.

Share Recommendations (20 November 2024)

Vertiv Holdings. VRT