8. Vertiv Holdings Co. (NYSE:VRT)
Market Capitalization as of September 13: $32.51 billion
Number of Hedge Fund Holders: 92
Vertiv Holdings Co. (NYSE:VRT) is a global provider of critical infrastructure and services for data centers, communication networks, and commercial and industrial environments. It offers a range of products and services, including power distribution units, cooling systems, and software solutions, enabling businesses to operate efficiently and effectively.
The company generated a revenue of $1.95 billion, in the second quarter this year, up 12.61% year-over-year. The growth was led by the Americas, with a strong contribution from EMEA as well. The earnings per share were $0.67.
The company is experiencing significant growth in AI deployment as it serves as a crucial link between IT and facilities within data centers. It is just beginning to tap into the potential of its unique position in the industry. By using a wide range of important digital infrastructure solutions across different power technologies, and backed by a global team of ~3,750 service engineers, it is well-equipped to help customers manage the growing complexities of today’s environment.
While enterprise markets are stable and telecom remains subdued, commercial and industrial sectors are thriving due to significant spending. The outlook is positive, especially for data centers, which account for 75% of its market exposure.
Vertiv Holdings Co. (NYSE:VRT) is well-positioned for growth as it strengthens its market leadership through increased R&D and capacity expansions. It’s gaining market share with new products and improved operations, making it an attractive investment opportunity for the future. As of now, 92 hedge funds are long in the company, with the highest stake valued at $782.8 million by Coatue Management.
Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q2 2024 investor letter:
“Vertiv Holdings Co (NYSE:VRT) a leading provider of critical digital infrastructure for data centers, contributed during the quarter. As an industry leader in data center cooling and power management, Vertiv is poised to benefit from AI-driven growth in data center spend. The NVIDIA partner network, strong industry relationships, and broad product portfolio that Vertiv maintains enables its participation in the creation of the technology roadmap for the future of the data center. In addition, Vertiv is investing in its capacity to serve this growing end market more effectively. The company also has an extensive global service network to aid customers as they grow. We believe the company has durable competitive advantages and a flexible balance sheet to benefit from the expected significant capital investment in data centers for years to come. Vertiv reported very strong results for the March quarter, with orders up 60%, which highlighted the strong demand it is seeing for its products. We sold some of our position into strength after the runup from the positive report, but still hold a major position in the Fund as we see considerable upside in the shares over time.”
