Vertiv pullback on DeepSeek concerns overdone, says JPMorgan

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.