Vertiv reported strong earnings and orders early Wednesday, sending shares skyrocketing to record highs. It's a positive sign for artificial intelligence and AI stocks, including Nvidia, Super Micro Computer and Broadcom.
Vertiv earnings jumped 79% to 43 cents a share, easily beating analyst views though growth slowed for a third straight quarter. Revenue rose 8% to $1.64 billion, slightly topping. Organic orders jumped 60% in constant currency.
The company raised full-year EPS guidance, largely in line with consensus.
Vertiv stock soared nearly 18% to 93.26 shortly after the open, hitting a new all-time high. Shares popped 4% Tuesday following a 50-day line on Monday.
Vertiv isn't directly involved in artificial intelligence. But as a maker of coolant systems for data centers, Vertiv is a de facto AI play.
So its results are a positive sign for AI demand with investors unsure about current demand.
Other AI Stocks
Last Friday, Super Micro spooked AI investors because the server maker didn't provide any preliminary guidance with its earnings date press release. SMCI stock crashed 23% that day. Nvidia stock tumbled 10%. Broadcom sank 4.3%, down 10.4% for the week.
Those stocks have bounced back somewhat this week, adding to gains on Wednesday.
Nvidia stock rose 1.1%, already up 8.2% on Monday-Tuesday. The AI leader is nearing the 50-day line again.
Super Micro stock popped 4% after gaining 6.8% to start the week.
Broadcom stock advanced 2% early Wednesday after climbing 3.7% on Monday-Tuesday.
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