Vertiv Soars 269% as AI Boom Powers Data Center Cooling Demand
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Vertiv stock skyrocketed 269% in 2023, outperforming Nvidia's 246% gain, due to soaring demand for data center cooling systems needed to run AI models.
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Vertiv makes immersive liquid cooling systems, microgrids, and other data center infrastructure that removes heat from densely-packed AI computing hardware.
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Generative AI's compute-intensive workloads create 4x more heat than traditional servers, driving strong demand growth for Vertiv's products.
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Vertiv dominates the liquid cooling market and posted 18% revenue growth in Q3 2023, with analysts expecting nearly 20% growth for the full year.
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While Nvidia is growing faster, Vertiv lacks Nvidia's exposure to limitations on advanced chip exports to China, signaling continued strong growth potential.