Vertiv (VRT) reported strong earnings and orders early Wednesday, sending shares skyrocketing toward record highs. It’s a positive sign for artificial intelligence and AI stocks, including Nvidia (NVDA), Super Micro Computer (SMCI) and Broadcom (AVGO).
X
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 17% before the open, signaling a new 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%. 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 2% before the open, already up 8.2% on Monday-Tuesday. The AI leader is nearing the 50-day line again.
Super Micro stock popped 4% in premarket trade after gaining 6.8% to start the week.
Broadcom stock was not yet active early Wednesday after climbing 3.7% on Monday-Tuesday.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE:
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Futures: Tesla, AI Play Vertiv Skyrocket On Earnings; Meta Looms
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
