1 Hot Data Center Stock to Buy -- If It Ever Cools Off
With artificial intelligence (AI) getting installed in big-tech data centers at a rapid pace, the investment world has begun fretting over a new set of related problems: higher energy consumption. The semiconductor systems used to power AI -- like those from Nvidia -- consume copious amounts of energy, so much so that expectations for global power demand are rapidly rising.
Nvidia isn't worried. It has an ecosystem of engineering partners hard at work solving energy delivery and other related data center problems. One such partner that got a name drop from CEO Jensen Huang earlier in 2024 is Vertiv Holdings (NYSE: VRT). The stock could be a buy, if only the price was right.
Up until just recently, Vertiv has been a pretty boring industrial energy engineering business. It was spun off from Emerson Electric and sold to private equity in 2016. Then in 2020, the name was changed to Vertiv and the company was taken public via a special purpose acquisition company (SPAC).
Source Fool.com
