More Evidence Of The AI Trade Being Not Yet Dead
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Vertiv Holdings Q1 FY12/25 Earnings Review
by Alex King, CEO, Cestrian Capital Research, Inc
So. After the close on Monday, Cadence printed its earnings. The company chose to raise guidance. Suggesting semiconductor is not dead.
Last week, Vertiv ($VRT), which makes bits and bobs for datacenters, raised its midpoint revenue guide for 2025. Kept their EPS guide as is. Sound mealy-mouthed? Maybe, but you have to remember that right now is the perfect time for companies to cut their guide or not guide at all, because of uncertainty around trade policy. So if a company chooses to actually raise - then I think we can take that as a sign of confidence indeed.
The narrative in computing hardware is that software & services are the new hardware. Well, not yet it seems. Vertiv is doing well, the stock was hammered in the recent selloff, and I myself think that both fundamentals and technicals are in good shape.
Let’s take a look. First the headliners.
That look like a dying industry to you? Me either.