10 Stocks Hurting From DeepSeek AI News That Could Turn Into Multibaggers

1. Vertiv Holdings (NYSE:VRT)

Vertiv Holdings is an attractive data center play. It designs, manufactures, and services some of the most important components of a data center. The stock is up 177% in a year but is taking a beating today, down 20% at market open.

The dip is a huge opportunity for investors who missed out on the earlier boom. Power management will continue to be the focus for companies building data centers as it is what constrains some of the GPU technology from further development. After the DeepSeeek AI warning, American companies are likely to step up and increase their investments in data centers and Vertiv is an obvious beneficiary of that. Being available at a 20% discount makes it all the more attractive.

The firm is also well-run. It is expected to convert all of its income into adjusted free cash flow, something not a lot of companies can boast of. As long as AI hype doesn’t die down, Vertiv should continue to perform.

Vertiv Holdings is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held VRT at the end of the third quarter which was 92 in the previous quarter. While we acknowledge the potential of VRT as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.