Vertiv: AI-Driven Growth, But No Moat—A Pass

Vertiv Holdings (VRT) manufactures uninterruptible power supplies (UPS), power distribution units, and thermal management equipment for data centers worldwide. The industry has growth potential, driven by the massive compute build-out required for artificial intelligence and deep learning, which demand significant computing power and energy. This trend increases demand for Vertiv’s products. However, the company doesn’t fit our “Green Dot” stock profile. Only about 20% of its revenue is somewhat recurring (from maintenance contracts and spare parts), and I don’t see a clear economic moat. Competition is intense, with larger players like Schneider Electric, Eaton, and ABB. It’s a pass.

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