Vertiv shares rose more than 13% on Wednesday after a stellar earnings report.
The AI data center company said its earnings beat expectations and demand was strong.
AI investments have faltered this year amid growing competition.
Where it’s headed: Vertiv Holdings rose as much as 21% on Wednesday, hitting an intraday high of $88.93 per share. The stock is down 29% so far this year.
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Why: The data center company impressed investors with better-than-expected earnings, fueling hopes that demand for AI remains intact.
One of the top AI buys for 2024, Vertiv makes equipment that keeps AI chips from overheating in data centers.
“We continue to see accelerated expansion of AI deployments across the data center market, with strong demand signals reinforcing our near- and long-term growth outlook,” Vertiv CEO Giordano Albertazzi said in a statement.
Vertiv reported a 21% increase in product orders since the fourth quarter, and the company raised its mid-term 2025 revenue outlook to $9.33 billion to $9.58 billion, above expectations of $9.18 billion. The company also raised its second-quarter revenue outlook, above consensus estimates.
First-quarter net sales reached $2.04, up 24% from the same period last year. Adjusted earnings per share reached $0.64, above expectations of $0.61.
Significance: Vertiv’s forecast-beating report could help revive stock market enthusiasm for AI deals, which had collapsed in 2025.
Concerns about overbuilding of data centers have grown in recent months. At the same time, fierce AI competition from China has also undermined confidence in U.S. chipmakers and AI hyperscalers.
Despite the challenges, Vertiv said it was seeing “increased demand” and pointed to close project collaboration with dominant AI chip company Nvidia.
