With the help of AI craze, the return rate of Vertiv(VRT.US) born out of SPAC is as high as 555%! Hanging ＂Know the King Concept Stock＂

Zhitong Finance APP was informed that Vertiv Holdings(VRT.US), which is committed to developing advanced liquid cooling and mixed cooling solutions for AI data centers, has become the best-performing US listed company listed through special purpose acquisition company (SPAC). With the excitement of investors on artificial intelligence, the total market value of Vertiv Holdings has exceeded 30 billion US dollars. It also greatly defeated one of the milestones of de-SPAC growth set by former US President Donald Trump’s media startup DJT.US.

According to statistics compiled by institutions, this company focusing on artificial intelligence infrastructure was listed after merging with a special purpose acquisition company (SPAC) supported by Goldman Sachs Group in 2020, and its share price return rate since listing has reached an astonishing 555%. Driven by the upsurge of global layout of AI, Vertiv Holdings has increased by 75% since 2024. Long before the boom of SPAC in COVID-19 epidemic era, the company’s share price has been soaring since the first day of listing.

This amazing increase is particularly prominent in the massive loss data of SPAC investors, and its return rate is more than 8 times that of the S&P 500 index. Among the companies merged with Special Purpose Acquisition Company (SPAC), DJT.US, which is deeply bound to former US President Trump’s "Understand the King Concept", is undoubtedly the most concerned company. After the SPAC merger, the company’s share price almost outperformed Vertiv, but the increase since the merger has almost completely retreated.

Wall Street analysts are generally optimistic that the huge investment scale of global enterprises in artificial intelligence technology will support the continuous expansion of data center capacity. This is a big plus for Vertiv. Most of the company’s revenue comes from the sales of products such as power management in data centers and IT liquid cooling and hybrid cooling systems used in data centers. The company’s main business focuses on providing power management and various cooling technologies for data centers around the world.

Vertiv is currently committed to developing advanced liquid cooling solutions for AI data centers. More importantly, according to public information, Vertiv and NVIDIA (NVDA.US), the dominant AI chip, are cooperating to develop an advanced liquid cooling solution for the next generation NVIDIA AI GPU to accelerate the data center. Vertiv’s high-density power supply and cooling solution aims to support the next generation GPU in NVIDIA to run the most computationally intensive AI workload safely with the best performance and high availability.

According to the data compiled by the organization, Wall Street analysts gave Vertiv 12 "buy" ratings and 1 "hold" rating, but there was no "sell" rating. However, according to the average forecast target price of analysts, the company’s share price is expected to increase by less than 1% in the coming year.

Noah Kaye, an analyst from Oppenheimer & Co, was more aggressive in targeting Vertiv, rating it as "outperforming the market" and setting its target price at $96 per share (Vertiv closed at $84.15 on Monday). In a report on April 4, analyst Kay emphasized that the "artificial intelligence megatrend" is expanding the potential market of AI data center capacity, and predicted that by 2026, the high-density computing market of Vertiv alone will reach 25 billion US dollars.

Although Trump Media Technology Group has attracted the attention of Wall Street and meme stock traders before, its current share price has fallen by 36% from its peak to $37.17 per share, which has caused it to plummet from the list of the best-performing so-called "de-SPAC" companies. On March 26th, the share price of this social media startup with the title of "Know the King Concept Stock" reached an intraday high of $79.38, becoming the second best-performing de-SPAC stock at that time, about 4% behind Vertiv. However, this decline has brought it back to the bottom of the list.

Companies such as Vertiv, DraftKings Inc and Symbotic are in the minority among companies listed through SPAC merger. According to the data compiled by the agency, among nearly 500 SPAC transactions completed since 2019, more than one-fifth of the target’s current transaction price is less than $1 each, with a drop of more than 90%.

For Vertiv investors, it is crucial to be able to bring excitement to the fast-growing AI data center market. The upsurge of global enterprises deploying artificial intelligence has greatly increased Wall Street’s enthusiasm for investing in Vertiv. Wall Street expects that with the increasing demand for hardware with more computing power on the application side, the sales of data center infrastructure will also increase substantially.

Amit Dariani, an analyst from Evercore ISI, wrote that Vertiv "may be the infrastructure company that can benefit most from the tailwind of artificial intelligence" among the physical infrastructure companies in data centers. He put forward an extremely optimistic bullish view that the stock may soar to $150. Daryanani wrote that if the company wants to rebound that far, it needs to achieve a strong operating profit margin and continue to benefit from the transformation of the air cooling system of GPU equipment system at the computing end to the liquid cooling system.