Why Vertiv Holdings Co. (VRT) Crashed On Wednesday?

We recently published a list of AI Stocks Dominate Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Vertiv Holdings Co. (NYSE:VRT) stands against other AI stocks that dominate Wednesday’s worst performers.

Wall Street’s major indices ended in the negative territory on Wednesday as investors parked funds to minimize risks from the resumption of trade war among the world’s largest economies, with a fresh round of tariffs scheduled to be implemented next week.

The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.

According to President Donald Trump, all vehicles made outside of the US would be slapped with a 25-percent tariff.

The broader market downturn spilled over into 10 companies—predominantly AI stocks—further dampened by a cautious outlook on the industry. In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A close-up of a group of technicians working on complex data center systems.

Vertiv Holdings Co. (NYSE:VRT)

Vertiv Holdings nosedived by 10.88 percent on Wednesday to finish at $81.62 apiece as investors soured on bearish outlooks from two analysts.

Barclays lowered its price target for the company to $100 from $110 previously but maintained an equal weight rating on VRT.

According to the investment firm, VRT’s orders in the first quarter of the year would not seem to translate to high-teens growth in 2026.

In addition, Barclays turned cautious following Alibaba (NYSE:BABA) Chairman Joe Tsai’s sour comments on the AI sector, saying that it has become “a bubble.”

For its part, TD Cowen underscored the noticeable slowdown in orders for data center equipment that is hurting demand for its cooling systems.

The shift began in January this year when technology giants Microsoft and Google began redesigning their data centers to cram more power-hungry equipment into each server rack.

It underscored that neither the hyperscalers nor the third-party data centers would be able to place orders until the new designs are finished.

Overall, VRT ranks 2nd on our list of AI stocks that dominate Wednesday’s worst performers. 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 as promising as VRT but 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 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.