Why Vertiv & Celestica Are Two of the Biggest Winners This Earnings Season

Watch Why Vertiv & Celestica Are Major AI Winners This Earnings Season 

In a recent podcast discussion, Eric Bleeker and Austin dove into the promising financial results of several companies in the AI infrastructure sector, with a particular focus on Vertiv (NYSE: VRT) and Celestica (NYSE: CLS).

Vertiv raised its full-year revenue projection to around $10 billion, a notable increase from its previous estimate of $9.5 billion. This growth reflects a broader trend among infrastructure companies that are capitalizing on the burgeoning demand for AI technologies, particularly in areas such as data transmission and cooling solutions.

Celestica also issued outstanding earnings and is now up 130% year-to-date. Bleeker also highlighted that if investors have missed the current run-up in AI infastructure stocks, they can still get exposure through a company like Schneider Electric, whose shares are only up 6% year-to-date despite the company being sold out of critical AI infrastructure products through 2030. 

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If you’re on the hunt for more AI stock ideas, check out the latest episode of 24/7 Wall St.’s AI Investor Podcast. 

Each week, we break down the biggest news in the AI space and invest $500,000 in our favorite AI ideas. The best part? You can subscribe and follow along with what we expect to be the biggest trend in technology history for free. You can listen to the latest episode (where we discuss Vertiv and Celestica’s recent earnings) in either Spotify or Apple Podcasts below. 

Transcript 

Eric Bleeker: Let’s talk about Vertiv first. For each of these companies, I’ll make one key point since we have a lot to cover.

Their earnings show there’s still a lot of upside in AI infrastructure plays. Vertiv is now projecting full-year revenue of about $10 billion, a significant jump from the previous estimate of $9.5 billion on the high end.

Many companies in this infrastructure space have been winners during this earnings season. Celestica, which we’ve discussed frequently, saw a 20% increase in share price the day after earnings.

We’re witnessing significant acceleration in the share prices of companies like Credo and Fabrinet, which are well-positioned in this infrastructure build-out. The reason is that the $450 billion in CapEx spending from major data center companies across the next year is not equally distributed; some companies are benefiting more than others. We’re seeing increased spending in areas like faster data transmission and cooling solutions, where Vertiv excels.

Additionally, Schneider Electric, another stock in the portfolio, experienced a drop after earnings due to merely affirming guidance. They are a leading company in power supply systems and have made acquisitions in cooling solutions.

This presents a lower-risk way to engage with the growth of the data center boom.

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