Vertiv Holdings Co. has become a top performer among companies that joined the stock market through a special method called a SPAC. Its value has shot up to more than $30 billion.
This rise is mostly because people are excited about artificial intelligence (AI). This puts Vertiv ahead of other big SPAC deals, like Donald Trump’s new media company.
Since it became public by joining forces with a SPAC backed by Goldman Sachs Group Inc. in 2020, Vertiv has done well, making investors a whopping 555% profit, which is way better than the regular stock market performance.
Why Are People Excited About Vertiv?
People are hopeful about Vertiv because they think AI will become even more important. And as AI grows, it’ll need more and more space in data centers. Vertiv is good at managing power and IT stuff for these data centers.
So, it’s in a good spot to benefit from this. Analysts who study these things say Vertiv is a good buy, expecting its share price to go up a bit in the next year.
But one analyst, Noah Kaye from Oppenheimer & Co., thinks it’ll go up a lot. He says the market for super-powerful computing, which Vertiv deals with, will be worth $25 billion by 2026.
What Challenges AccomplishesVertiv Face?
Even though Vertiv is doing great, the way it joined the stock market has been tough for many investors.
Around 20% of nearly 500 SPAC deals since 2019 have ended up with their shares valued below $1 each. But companies like Vertiv, DraftKings Inc., and Symbotic Inc. have managed to do well.
For Vertiv to keep succeeding, it needs to keep up with the growing need for data centers driven by AI. It also needs to make its cooling systems for computer gear more efficient.
An analyst named Amit Daryanani from Evercore ISI thinks Vertiv’s shares could go up to $150 if it does these things right.
