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Vertiv shares fall 27.9% in July despite strong quarterly growth
The AI data center supplier reported Q2 revenue up 24% to $3.72 billion and adjusted EPS up 60% to $1.52, but its results and outlook did not fully match investors' expectations.
Vertiv Holdings’ stock dropped 27.9% in July, even after the AI infrastructure provider posted a solid earnings report late in the month, according to data cited by Yahoo Finance using S&P Global Market Intelligence.
The outlet said the sell-off reflected shifting sentiment toward AI-related semiconductor and “AI-adjacent” industrial stocks that support AI data centers. It pointed to multiple factors driving the broad downturn, including short-seller Michael Burry promoting his bets against AI stocks, the release of China’s Kimi 3 open-weight model, and the failure of AI-focused hedge fund Situational Awareness.
Vertiv is a key supplier for AI data center build-outs, providing electrical systems and water-cooling solutions as newer AI chips consume more energy. Yahoo Finance reported that in the second quarter, Vertiv’s revenue grew 24% to $3.72 billion, while adjusted, or non-GAAP, earnings per share rose 60% to $1.52.
Despite beating Wall Street expectations, the outlet said Vertiv’s revenue increase fell slightly short, and the company also had grown 30% in the prior quarter. Yahoo Finance added that Vertiv forecast revenue to reaccelerate in the second half of the year, including raising third-quarter revenue.