Data Center
Vertiv Q2: Margins to Rebound by Q4, Yet Growth is Decelerating
Vertiv offered a mixed report this quarter with stronger commentary about Q4 as opposed to Q3, along with a slight miss on adjusted operating margin. Considering the margins are already thin for many AI hardware stocks, any miss tends to be amplified. With that said, the stock has been on a tear off the Apri lows - up 130% since early April. Given the report was not a blowout, a cooling off may be in order regardless of the earnings numbers. Notably, Vertiv will not win any hypergrowth stock awards, especially as management has previously offered CAGR guidance of 15% to 17% through 2029. Rather, it’s where Vertiv is positioned as an AI infrastructure partner especially as the trend turns toward modular infrastructure that makes this a stock to watch.
Sign in to read the full article
Sign in with your I/O Fund account to check your plan access.
