The AI trade is gaining momentum as the markets shift focus back onto semiconductor, hardware, and software companies driving the technological revolution. One company worth keeping an eye on is Vertiv (VRT), a provider of liquid cooling systems for data centers supporting AI operations. Liquid cooling technology is expected to see increased adoption as data centers operated by ‘hyperscalers’ and the co-location market continue to expand.
VRT has shown impressive quarter-over-quarter EPS growth and consistently beat consensus expectations, signaling strong performance. From a technical standpoint, the stock has experienced a significant rally since its 2022 lows, with potential upside indicated by Fibonacci projection levels ranging from $127 to $171.
As we analyze the daily chart, there is an anticipated support zone for VRT between $103 and $95. A strategy to build a position in this stock could involve buying one-third of the intended position size on a pullback to $105, another one-third in the $100 zone, and adding more as the stock breaks new highs.
Founder of Inside Edge Capital, Todd Gordon, is monitoring VRT closely and plans to capitalize on any pullback to initiate a position in the growth portfolio. While he does not currently own VRT personally or within his wealth management company, Inside Edge Capital, this may change as market conditions evolve.
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