We recently compiled a list of the 15 AI News Shaping Wall Street Today. In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against the other AI stocks that are shaping Wall Street today.
In recent news reported by Reuters, a U.S. congressional commission proposed a Manhattan Project-style initiative to fund the development of AI systems that will be as smart, or even smarter, than humans. The proposition is amid the intensifying competition from China over advanced technologies.
“We’ve seen throughout history that countries that are first to exploit periods of rapid technological change can often cause shifts in the global balance of power. China is racing towards AGI … It’s critical that we take them extremely seriously”
– Jacob Helberg, a USCC commissioner told Reuters
Helberg, while recognizing that energy infrastructure is a significant bottleneck for training large AI models, suggests that streamlining the permitting process for data centers is one way of enabling a public-private partnership that could accelerate AI development.
READ ALSO: 15 AI News Making Waves Right Now and 10 AI News Investors Can’t Afford to Miss
This news follows a rumor that artificial intelligence models are hitting a “wall”. Separate sources, including Reuters, The Information, and Bloomberg, have reported that companies such as OpenAI are failing in their next endeavors. Unnamed sources have claimed that OpenAI’s Orion is “so far not considered to be as big a step up from OpenAI’s existing models as GPT-4 was from GPT-3.5.”
However, OpenAI is pushing back on these rumors, stating that there is “no wall”. Despite having not reached a wall, analysts do admit that it’s possible to have reached a turning point.
“We haven’t seen a breakthrough model in a while. Part of it is that we’ve exhausted all the human data, and so just throwing more compute at the same data may not yield better results.”
– Gil Luria, managing director at investment group D.A. Davidson
Gary Marcus, NYU professor emeritus and outspoken critic of AI hype, has this to say:
“The economics are likely to be grim. LLMs will not disappear, even if improvements diminish, but the economics will likely never make sense…”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among 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 global provider of digital infrastructure technology and services for data centers, communication networks, and commercial and industrial facilities.
On November 19, Vertiv Holdings Co (NYSE:VRT) announced the expansion of its liquid cooling product portfolio by introducing two new Vertiv™ CoolChip CDU (coolant distribution unit) systems. The Vertiv CoolChip CDU family offers affordable and flexible liquid cooling for data centers that enable the operation of high-density computing for AI alongside traditional air-cooled racks. The two cooling systems are on display at the Vertiv booth at SC24, the international conference for high-performance computing, networking, and storage, from November 19 – 22. Besides the cooling systems, Vertiv also boasts an extensive suite of global service offerings to support the deployment of liquid-cooled infrastructure.
“The AI-focused data center necessitates advanced cooling technologies. Vertiv’s expanded liquid-cooled solutions support the densification of the data center we are seeing as a result of AI. Our liquid cooling portfolio, complemented by our full solution of air cooling, heat rejection, and re-use solutions and global services capability, enables both new and existing data centers to seamlessly introduce liquid cooling as part of the overall hybrid cooling solution to make AI deployments easier, faster and more cost-effective for customers.”
-John Niemann, senior vice president of the thermal business unit at Vertiv.
Overall VRT ranks 4th on our list of the AI stocks that are shaping Wall Street today. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some 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.