At Extreme Investor Network, we are always on the lookout for companies that are making waves in the financial world. One such company that recently caught our attention is Vertiv (VRT), which reported strong earnings and orders early Wednesday, causing its shares to skyrocket towards record highs.
While Vertiv may not be directly involved in artificial intelligence, as a maker of coolant systems for data centers, it is considered a de facto AI play. This is a positive sign for the AI industry, which includes other stocks such as Nvidia (NVDA), Super Micro Computer (SMCI), and Broadcom (AVGO).
Vertiv’s earnings saw a significant jump of 79% to 43 cents per share, surpassing analyst expectations. The company also reported a revenue increase of 8% to $1.64 billion, along with a 60% jump in organic orders in constant currency. As a result, Vertiv raised its full-year EPS guidance, in line with market consensus.
Following the positive earnings report, Vertiv stock surged 16% before the market opened, indicating a potential new high. The stock had already seen a 4% increase the previous day after crossing above its 50-day line.
In comparison, other AI stocks like Nvidia, Super Micro Computer, and Broadcom experienced a temporary setback last Friday. However, these stocks have bounced back this week and saw gains on Wednesday. Nvidia stock rose 2%, Super Micro stock gained over 4% in premarket trade, and Broadcom stock advanced 1%.
Overall, the strong performance of Vertiv and other AI-related stocks is a positive signal for the industry. As investors remain uncertain about current AI demand, companies like Vertiv serve as a benchmark for the overall health of the sector.
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