Vertiv (NYSE:VRT) stock is on the rise today as investors celebrate the artificial intelligence (AI) boom helping out the data center cooling company’s business.
The increase in demand for its data center cooling products resulted in a 60% increase year-over-year (YOY) in orders during the company’s first quarter of 2024. That resulted in net sales climbing 8% higher to $1.64 billion. This beat out Wall Street’s estimate of $1.62 billion.
Giordano Albertazzi, CEO of Vertiv, provided the following insight on the company’s performance:
“We are seeing order patterns with longer lead times based on customer build schedules, largely in 2025 and beyond, suggesting AI is starting to scale. Though still in its early stages, AI is quickly becoming a pervasive theme across our end markets. Continued advances in GPU development and other AI-enabling technologies are necessitating changes and upgrades to the critical digital infrastructure.”
What’s Next for VRT Stock?
Strong AI demand has Vertiv increasing its outlook for 2024. It now expects adjusted EPS to range from $2.29 to $2.35 alongside revenue between $7.54 billion and $7.69 billion. For comparison, Wall Street is predicting adjusted EPS of $2.30 on revenue of $7.63 billion.
VRT stock is up 10.9% as of Wednesday morning with more than 14 million shares traded. That’s well above its daily average trading volume of about 8.3 million shares.
Investors will want more of the hottest stock market stories below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
