Why Shares in Vertiv Crashed Today
Shares in data center equipment maker Vertiv Holdings (NYSE: VRT) tumbled more than 11% by 3 p.m. today. The decline comes after a general sell-off in the AI/data center sector following the news that the U.S. is banning 80 companies, including many in China, from buying U.S. technology. They include customers of Vertiv's partner Nvidia. As such, the whole sector sold off today.
In addition, some analysts have a more negative outlook on Vertiv. An analyst at Barclays reduced the company's price target on Vertiv to $100 from $111 and maintained an "equal weight" recommendation, citing potential pressure on revenue and margin.
In addition, a TD Cowen analyst believes that since data center demand has increased, hyperscalers could be redesigning data centers in response, leading to a slowdown in near-term orders for Vertiv's power and thermal management equipment.
Source Fool.com
