Goldman Sachs’ Best Phase 2 AI Stocks: Top 24 High Conviction AI Stocks

4. Vertiv Holdings Co (NYSE:VRT)

Year To Date Share Price Gain: 145.05%

Number of Hedge Fund Investors in Q2 2024: 92

Vertiv Holdings Co (NYSE:VRT) is another data center equipment provider. The firm’s products range from busbars and racks to analytical software and project deployment services. Vertiv Holdings Co (NYSE:VRT) also provides data center liquid cooling products, which are some of the most important ones when it comes to data center infrastructure as they are 25x more efficient compared to alternatives. Goldman’s data shows that a ChatGPT query consumes as much as 10x the energy of a Google Search query, with other estimates showing that global AI demand could require a stunning 4.2 billion cubic meters of water for cooling. Consequently, and as evidenced by SuperMicro’s meteoric ride on the stock market, cooling is all the rush in the data center market. Budding data center demand has also translated into growth for Vertiv Holdings Co (NYSE:VRT). The firm’s second quarter saw it grow organic sales by 54%, which enabled it to grow its market share. Additionally, it has also teamed up with NVIDIA for cooling systems to potentially unlock more market share as NVIDIA pitches its AI products to businesses.

Baird Equity Asset Management mentioned Vertiv Holdings Co (NYSE:VRT) in its Q2 2024 investor letter. Here is what the fund said:

“We made several adjustments to our technology sector mix. We also added Manhattan Associates and Vertiv Holdings Co (NYSE:VRT). Vertiv is a power equipment company benefitting from secular growth in data center spending and in artificial intelligence-driven thermal management solutions.”