We recently published a list of Top 10 AI News Updates You Should Not Miss. In this article, we are going to take a look at where Vertiv Holdings Co. (NYSE:VRT) stands against other top AI news updates you should not miss.
Leading companies across diverse industries, including electronics, IT infrastructure, surveillance, renewable energy, robotics, and cybersecurity, are heavily investing in AI and machine learning to leverage the technology for widescale innovation. In turn, companies are able to reduce operational costs, tackle workforce challenges, and transform client experiences.
For instance, in the IT infrastructure space, AI spending is expected to jump to $509.1 billion in 2027 from $175.9 billion in 2023, according to the IDC. The spending on AI platforms is expected to rise as they become increasingly important for business’s digital operations.
“Harnessing machine learning can be transformational, but for it to be successful, enterprises need leadership from the top. This means understanding that when machine learning changes one part of the business — the product mix, for example — then other parts must also change. This can include everything from marketing and production to supply chain, and even hiring and incentive systems,” said Erik Brynjolfsson, co-founder of Workhelix.
Elsewhere, PwC global chairman, Mohamed Kande, during his speech at the World Economic Forum in Davos urged people to not be afraid of AI in the workplace but embrace it as a digital colleague.
“People fear what they don’t understand, so exposing them to the technology, putting in their hands makes a big difference,” Kande said about AI, adding that doing so allows employees to view AI as a “digital colleague…You don’t fear your colleagues, you partner with them…So we are actually asking people to partner with the technology.”
For this article, 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) offers hardware, software, and analytics services to solve the challenges of data centers, communication networks, and industrial facilities. Its AI-ready power, cooling, and IT infrastructure offerings, such as battery-energy storage systems and rack power distribution units, are designed to match demanding AI workloads even during outages, reducing dependency on utility providers. Vertiv Holdings Co. (NYSE:VRT) also partnered with Nvidia (NASDAQ:NVDA) and Intel Corp. (NASDAQ:INTC) to develop new-age AI cooling solutions to keep AI systems running regardless of the cluster size.
On January 17th, Evercore ISI reduced Vertiv Holdings Co.’s (NYSE:VRT) stock price target to $145 from $150 while retaining an “Outperform” rating. The brokerage is constructive on companies linked to the broader enterprise IT and AI-related infrastructure spending and thinks the setup for calendar Q4 “remains favorable”, with expectations for in-line or modest beats. However, analysts see a chance of companies taking “a more prudent and cautious stance” for calendar 2025 guidance, given ongoing uncertainty on the public spending side.
Overall, VRT ranks 1st on our list of top AI news updates you should not miss. 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.
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 is originally published at Insider Monkey.
