We recently published a list of Top 10 AI Stocks That Are Being Monitored By Wall Street. In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against other top AI stocks that are being monitored by Wall Street.
As the global tech sector was catching up to the disruption caused by DeepSeek’s r1 AI model, Chinese e-commerce giant Alibaba announced its brand new Qwen 2.5 AI model on the first day of the Lunar New Year. The Qwen 2.5 is pre-trained on large-scale multilingual and multimodal data and rivals DeepSeek’s AI model.
“Qwen 2.5-Max outperforms … almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,” the group’s cloud unit on its official WeChat account.
The latest Chinese AI model release also sent US firms scrambling to innovate and stay ahead of the competition. OpenAI CEO Sam Altman recently teased several “exciting new features” coming to ChatGPT and a new ChatGPT Gov tool to bolster ties with the US government.
The rise of advanced, cost-effective Chinese AI models has introduced volatility in US stocks as analysts rampantly rerate companies and shift outlooks based on the rapidly evolving tech landscape.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a group of technicians working on complex data center systems.
Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 91
Vertiv Holdings Co (NYSE:VRT) is a leading designer and developer of hardware, software, and analytics solutions that revolve around power management, thermal systems, and lifecycle services for data centers, communication networks, and industrial environments. Its AI-ready power, cooling, and IT infrastructure offerings are designed to run AI workloads even during outages, thus reducing dependency on utility providers. The company also collaborates with Nvidia (NASDAQ:NVDA) and Intel Corp. (NASDAQ:INTC) to develop AI cooling solutions to keep AI systems operational regardless of the cluster size.
On January 28th, JPMorgan noted the recent pullback in the company’s share prices due to the DeepSeek disruptions looks overdone and that it sees a lucrative risk/reward for the company. The brokerage noted that its model had always assumed growth in high-end AI server shipments would simmer beyond 2026, and the mix of training versus inference spending would shift from close to 70/30 in 2023 to the inverse of that by 2029, with inference needing reduced power per rack. However, JPMorgan believes Vertiv Holdings Co (NYSE:VRT) will benefit from a longer-term infrastructure cycle, with catalysts such as “myriad tech earnings reports,” likely reinforcing the growth trajectory.
Overall, VRT ranks 3rd on our list of top AI stocks that are being monitored by Wall Street. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
