Shares of Vertiv Holdings LLC (NYSE: VRT) jumped 5.02% in intraday trading on Wednesday, driven by sustained demand for its data center infrastructure solutions amid the rise of AI and cloud computing.
The company, a global provider of critical digital infrastructure and continuity solutions, saw its stock surge as investors remained optimistic about the long-term growth prospects of the data center industry. Despite concerns over the potential impact of DeepSeek, an AI platform that promises to reduce computing power requirements, analysts believe Vertiv's position as a leading player in the market positions it well for continued growth.
According to a report by Barron's, analyst Stephen Tusa of JPMorgan sees the recent pullback in Vertiv's stock as an attractive buying opportunity. Tusa argues that even in a worst-case scenario where DeepSeek delivers on its promises, Vertiv's cost discipline and market positioning would allow it to maintain margins and resume earnings growth in the long run, driven by broader AI adoption globally.
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