Had a target price ( but not an order in ) around $55 when it was more like $60. It dipped for one day and I missed it and been kicking myself ever since. Finally broke down and bought it on the dip to $ 88 when it pulled back from $109. Think i will be happy I did but not as happy....
What I don't know is this: are Vertiv cooling components part of SMCI's new liquid cooling system? Or are they direct competitors? SMCI just started selling a liquid colling tower that's 4 stories high. The tower sits outside the data center. There are two nine inch iron pipes, one pipe brings cool water from the tower into the data center and distributes the water across every single gpu. The other nine inch pipe brings the hot water our of the data center and back into the tower. This new cooling system is a significant source of new revenue for SMCI. But I don't know if Vertiv supplies components for SMCI's cooling system, or if they are competing with each other. Based on how they are both growing, I would assume the two companies work together, but I honestly don't know
I am not personally familiar with SMCI but a quick search shows they are providing rack manifolds for liquid cooling servers in the rack. Vertiv infrastructure complements and supports everything up to that point; generation of the cooling fluid, distribution pump systems (CDU), manifolds, etc. I am not sure if they are directly partnered, that likely depends on client preference for solutions providers.
5 year growth projections ( close to 30 pct annually) and forward PE of around 30. Fairly priced if you beleive the projections. If they execute shareholders will be very very happy indeed!
They are not just cooling data centers, but also their bottom line😅 Net Income reduced by -111.73% in March Quarter! Revenue growth only 12-20% Multiple= 41 😮 Nvidia is growing many times faster, and their multiple is only 60. Nvidia's multiple should be 500 or more!
The tricky thing is when the AI buildout ends. There is an ending. There is a cycle. It's not like this goes consistently daily forever like using WORD documents, or getting on social media.
The data center replacement buildout will end, but don’t forget there are many phases of the AI revolution ahead. Driverless truck fleets, robotics in factories, restaurants, warehouses etc, and healthcare systems will all see massive AI integration/upgrades. Just to name a few…
What is your point? After US corporations, next comes international corporations, then governments. And that doesn't even account for upgrade cycles. We are talking decades of infrastructure build up. I just got a fiber optic internet cables and that install began in the mid-90s.
