TD Cowen sees slower data center equipment purchasing as negative for Vertiv
TD Cowen analysts led by Michael Elias tell investors that the firm's channel checks at Nvidia's (NVDA) GTC event and DCD Connect indicate aggregate data center demand has increased year-over-year, despite more pervasive lease cancellations and deferrals by Microsoft (MSFT) than initially thought. The pullback from Microsoft has created an opportunity for both Google (GOOGL) and Meta (META) to backfill capacity, the firm says. Hyperscale redesigns for higher densities are driving slower DC equipment purchasing, which the firm views negatively for first half orders for Vertiv (VRT), TD added.
Easily identify stocks' risks and opportunities.
Discover stocks' market position with detailed competitor analyses.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on VRT:
Disclaimer & DisclosureReport an Issue
Vertiv falls -7.8%
Vertiv price target lowered to $100 from $111 at Barclays
Synchrony added to 'US 1 List' at BofA, three stocks removed
Vertiv initiated with an Outperform at RBC Capital
Vertiv Holdings call volume above normal and directionally bullish
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
44 minutes ago
- Business Insider
Microsoft is prepping an AI Copilot for the Pentagon
Microsoft is preparing a version of its Copilot AI tool for the Pentagon. "For DoD environments, Microsoft 365 Copilot is expected to become available no earlier than summer 2025," the company stated in a recent blog written for government customers. "Work is ongoing to ensure the offering meets the necessary security and compliance standards." Copilot is Microsoft's main generative AI offering. The company has developed several Copilot tools, which tap into AI models to automate various tasks and support human employees. The Copilot for Microsoft's 365 service works across productivity software such as PowerPoint slides, Excel spreadsheets, and Word documents. Microsoft has invested heavily to build these new offerings, but it's still trying to figure out the best way to make money from them. If the Pentagon signs up for a Copilot service, that would be a major win for the tech giant. In a recent meeting, Microsoft Chief Commercial Officer Judson Althoff told employees that a customer with more than 1 million Microsoft 365 licenses will be adding Copilot, according to people who attended. Althoff did not disclose the customer and Microsoft declined to comment, but there are likely only a few customers with workforces big enough to justify adding more than 1 million Copilot seats. The Defense Department is one such customer. It is one of the largest employers in the US, with a military workforce of about 2.1 million service members and about 770,000 civilian employees, according to a 2023 report by the Government Accountability Office. The Pentagon did not respond to a request for comment. Microsoft has publicly stated plans to add Copilot to versions of its Microsoft 365 suite of applications for high-security government customers this year. Microsoft's website currently states that Microsoft 365 Copilot is not available via "GCC-High," its high security cloud platform for US government personnel. However, in a March 31 update, the company said it plans to add Copilot to these environments as soon as this summer. "For organizations in GCC High, Microsoft 365 Copilot remains in development to meet security and compliance requirements," the company explained. "We are planning on a general availability (GA) release this calendar year."
Yahoo
2 hours ago
- Yahoo
Risky stocks and safe-haven gold are both aiming for records. Who will blink first?
The S&P 500 and gold are both within striking distance of all-time highs — a rare event that leaves investors wondering what exactly is going on. After all, stocks at all-time highs indicate that investors are optimistic about the future and happy to pile into risky assets. Gold, meanwhile, is often viewed as a safe haven — a port in the storm during periods of uncertainty. 'It might be another Apple or Microsoft': My wife invested $100K in one stock and it exploded 1,500%. Do we sell? Why Goldman Sachs says high-flying tech stocks may be headed for a tough stretch My friend, 83, wants to add me to his bank account to pay his bills. What could go wrong? 'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? One of our children has legal knowledge and lives far away, the other lacks financial savvy but lives nearby. Who should we appoint as executor? 'It's like watching someone eat salad and dessert at the same time,' said Adam Koos, president and senior financial adviser at Libertas Wealth Management Group. 'Investors are trying to be 'healthy' but still hedging against what might come later.' It is possible for both the S&P 500 and gold to hit, and hold, record highs at the same time, but 'it's not exactly the norm,' he said. When it does happen, it's usually 'under a specific set of conditions that reflect a combination of optimism and anxiety in the markets.' This year's rise for both tells a story of 'conflicting narratives,' Koos said. 'The stock market is pricing in a soft landing with [artificial-intelligence] fueled earnings growth, while gold is pricing in longer-term structural concerns' such as runaway deficits, a weakening dollar or even central-bank demand from countries hedging U.S. exposure. Traditionally, the S&P 500 SPX and gold GC00 are 'somewhat inversely correlated,' he said. When they rise together, it often 'points to a deeper undercurrent,' such as fear around inflation, a weakening dollar or expectations that the Federal Reserve might start easing interest rates. Both gold and the S&P 500 have been moving higher so far this year, though the metal has far outpaced the rise for the index. As of Monday, gold futures were up nearly 27% in the year to date and sitting just 2.1% below the record high set on April 21, according to Dow Jones Market Data. The S&P 500 is up only 2.1% this year but has roared back from the steep selloff that followed President Donald Trump's unveiling of sweeping tariff measures on April 2. The S&P 500 as of Friday was just about 2.3% below its record finish, scored on Feb. 19. Read: The S&P 500 is back at a big milestone. Here's what one strategist needs to see to be even more optimistic. 'The rare positive correlation between gold and the index, which historically tend not to peak together, may have been fueled by dovish Fed expectations and fiscal as well as structural concerns,' said Dina Ting, head of global index portfolio management at Franklin Templeton. The S&P 500 index and gold futures had reached respective record highs at the same time earlier this year, on Feb. 18, with the index marking a record close at the time of 6,129.58 and gold settling at $2,949. Equities tend to respond to growth-related factors like earnings and interest rates, while gold prices tend to move on more fear-related factors like inflation expectations or debt levels, said Keith Weiner, chief executive officer of Monetary Metals. Right now, we seem to be in a period where both sets of forces are 'elevated,' he said. Optimism is driving equity markets higher, while underlying fears are supporting record demand for gold' and investors are 'positioning for both potential outcomes by continuing to buy stocks for growth and gold for stability.' To see the precious metal and the index move in tandem is a break from the norm, but it's not surprising to see, said Harley Kaplan, an independent financial advisor in Plymouth, Mass. 'Investments can be emotion driven and presently, there is a lot of risk in the world,' he said. Gold has always provided security against turmoil, while investors in equities invest for tomorrow — 'showing confidence in the future.' Meanwhile, the ratio between gold and S&P 500, which represents how many ounces of the metal are required to buy the index, appears to have rebounded since narrowing and is 'elevated but not extreme,' said Franklin Templeton's Ting. 'That suggests confidence in equities, but not an outright dismissal of gold,' she told MarketWatch. 'The significance here is it's signaling a reversion to more traditional dynamics.' At roughly 1.76, the ratio currently favors gold, Koos said. It had fallen to around 1.5 back in April, according to a chart provided by Libertas Wealth Management. When the ratio falls, gold is the relative outperformer, which likely means that investors are 'shifting toward safety or bracing for volatility,' he said. When the ratio is moving up, the bulls — and momentum and strength — are in the hands of the S&P 500, he said. That said, although it's rare, the index and gold could reach record highs simultaneously again, said Koos. For that to be sustainable, however, there would likely need to be a combination of falling real interest rates or dovish Fed policy, ongoing demand for hard assets — such as central banks buying gold — continued belief in long-term growth that would support equities and 'enough macro uncertainty to keep fear trades alive,' he said. 'It's a fragile dance,' Koos said, likening such a situation to watching 'someone balancing two spinning plates.' It's possible for a while, he said, but it 'takes constant motion and the right conditions to keep both from falling.' 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? I bought my mother-in-law a condo — and she took out a $30,000 car loan. Now she refuses to get a roommate. How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? 'He failed in his fiduciary duty': My brother liquidated our mother's 401(k) for her nursing home. He claimed the rest. A local restaurant has a 5% container charge and 3% kitchen-service fee. Is this as nuts as it sounds? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Vertiv Holdings Co (NYSE:VRT) Unveils AI-Ready Cooling Architecture For NVIDIA GB300 NVL72 Platform
Vertiv Holdings Co recently introduced an energy-efficient 142kW cooling and power reference architecture for the NVIDIA GB300 NVL72 platform, which aligns with broader trends driving technology innovation in data centers. Over the past quarter, Vertiv's stock price rose by 27%, a significant move partially supported by this product release. This rise contrasted with a more modest market uptick where indices like the S&P 500 and Nasdaq saw less dramatic increases, buoyed by benign inflation data and easing U.S.-China trade tensions. Vertiv's innovative strategies clearly supported its positive stock performance during this period. We've identified 2 possible red flags with Vertiv Holdings Co and understanding the impact should be part of your investment process. The latest GPUs need a type of rare earth metal called Neodymium and there are only 24 companies in the world exploring or producing it. Find the list for free. Vertiv Holdings Co's recent introduction of energy-efficient cooling and power solutions aligns well with its strategic focus on AI and data centers, potentially boosting future revenue and earnings. Over a remarkable three-year period, Vertiv's total shareholder return was very large at 1062.27%, reflecting favorable investor sentiment and strong business execution. Despite posting a compelling annual return, Vertiv shares underperformed the US Electrical industry, which saw a 24% increase over the past year. However, Vertiv has outpaced the broader US market, which returned 12.8% over the same period, underlining its robust performance. The collaboration with NVIDIA is likely to reinforce Vertiv's growth trajectory by catalyzing revenue growth through AI infrastructure projects. Analysts forecast a significant upward trend, with revenues expected to rise to approximately $12.2 billion by 2028. While the company's current share price is US$93.48, it remains below the consensus price target of US$108.14, indicating potential room for upside as the market adjusts to revised forecasts. Gain insights into Vertiv Holdings Co's future direction by reviewing our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:VRT. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
