Vertiv Holdings Co (VRT): Why AI & Data Center Growth Make It a Stock to Watch

We recently published a list of 10 AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against other AI news updates investors should not miss.

“Deep Research” is the name of the AI tool OpenAI launched yesterday. According to the GenAI star startup, it can conduct multi-step research on the internet for complex tasks. Deep Research is powered by a version of the upcoming OpenAI’s o3 model which is optimized for web browsing and data analysis, as reported by Reuters.

This kind of technology is called an A.I. agent. AI agents can use other software on the internet, perform tasks, and learn from experience. It seems that artificial intelligence agents are going to be all the hype this year, as predicted by plenty of analysts and industry experts in the artificial intelligence world. Soon enough, there may be jobs that only AI agents could apply for.

“We’ve observed tangible progress, with the industry coalescing around the concept of AI ‘agents’ capable of executing a task on your behalf. At work, an agent could analyse customer purchase histories and automatically select and deliver personalized email promotions designed to boost sales”.

-US investment firm Franklin Templeton

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OpenAI said that all users have to do is give it a prompt which will enable OpenAI’s chatbot ChatGPT to find, analyze, and synthesize several online sources, be it text, images, or PDFs, to develop a comprehensive report at the level of a research analyst.

“It accomplishes in tens of minutes what would take a human many hours”.

-OpenAI.

However, it does have limitations as it is still in its early stages.

“It may struggle with distinguishing authoritative information from rumors, and currently shows weakness in confidence calibration, often failing to convey uncertainty accurately.”

Currently, the AI tool is available on the web version of ChatGPT and will be rolled out to mobile and desktop apps within February. This is the second AI agent that OpenAI has launched this year, following Operator, a tool that can perform a variety of tasks such as creating to-do lists or assisting with vacation planning.

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).

Vertiv Holdings Co (VRT): Why AI & Data Center Growth Make It a Stock to Watch

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 January 29, TipRanks reported that Bank of America Securities analyst Andrew Obin has maintained their bullish stance on VRT stock, giving a Buy rating in a report issued on January 21. Obin’s buy rating is based on the company’s projected growth in earnings and its strategic positioning in the AI and data center markets. The analyst also believes that Vertiv’s (NYSE:VRT) stock may be undervalued given that the market is cautious about EPS growth and AI revenue, but maintains that 25% yearly EPS growth from 2024 to 2027 is realistic. Vertiv’s non-AI revenue streams are expected to grow steadily, and its strategic involvement in AI and broader data center infrastructure markets further positions it for future growth. Overall, its plans related to hyperscaler capex and continued revenue growth in both AI and non-AI sectors have led to the Buy rating.

Overall, VRT ranks 4th on our list of AI news updates investors should not miss. 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.