12. Vertiv Holdings Co (NYSE:VRT)
Weekly Decline: 12.05%
Number of Hedge Fund Holders: 92
Vertiv Holdings Co (NYSE:VRT) is an electrical components and equipment company based in Westerville, Ohio. It offers critical digital infrastructure tech and life cycle services for data centers, communication networks, and commercial and industrial environments.
In the second quarter, Vertiv Holdings Co (NYSE:VRT) saw its organic orders growth come in at 57%, significantly above the 37% growth figure reported in the second quarter of 2023. Net sales also grew by 13%, while operating profit grew by 63% year-over-year. The organic order growth is important to note, seeing as increased orders translate into higher revenue for Vertiv Holdings Co (NYSE:VRT) when it performs its services.
Since Vertiv Holdings Co (NYSE:VRT) has offered not only profit growth but also revenue growth in the second quarter, many investors are eagerly following the stock’s performance because of the potential it has for accelerated revenue growth. The main drivers for this growth include increased scaling of AI deployment since Vertiv Holdings Co (NYSE:VRT) has the capacity to seize this opportunity while continuing to invest in capacity for the future.
Vertiv Holdings Co (NYSE:VRT) is also considered to be the connective tissue between IT and facilities in data centers. Many analysts consider the AI data centers space to be the area offering the highest growth potential within AI, seeing as investments in this space have only been increasing this year. This is why Vertiv Holdings Co (NYSE:VRT) seems to be uniquely positioned to benefit in this market. In light of all this, the current decline of the stock shouldn’t raise any alarms just yet.
In total, 92 hedge funds were long Vertiv Holdings Co (NYSE:VRT) in the second quarter, with a total stake value of $3.2 billion.
Baron Funds mentioned Vertiv Holdings Co (NYSE:VRT) in its second-quarter 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.”
