JPMorgan believes the pullback yesterday in shares of Vertiv (VRT) Holdings looks overdone. The firm says its model had always assumed growth in high-end artificial intelligence server shipments would slow beyond 2026, and that the mix of training versus inference spend would shift from close to 70/30 in 2023 to the inverse of that by 2029, with inference requiring less power per rack. JPMorgan continues to believe Vertiv will benefit from a longer term infrastructure cycle. It sees catalysts from “myriad tech earnings reports, which the analyst expects will reinforce the growth trajectory. It sees an attractive risk/reward for Vertiv after Monday’s selloff.
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