Vertiv Holdings Stock Sinks on Slowing AI Data Center Demand Concerns | Global News Avenue

Vertiv Holdings(VRT) Stocks fell nearly 10% on Wednesday amid concerns about its surge in demand for its cooling systems Artificial Intelligence (AI) Data centers will slow down.

Vertiv said it expects adjustments for the current quarter Earnings per share (EPS) Between $0.57 and $0.63, the midpoint is below the $0.62 expected by analysts in the Visible Alpha survey. The company also explained that its guidance did not take into account “the potential impact of recent policy changes or considerations in the new U.S. government, including tariffs and corporate tax policies, or other government countermeasures.”

Outlook offset strong earnings in the fourth quarter. Vertiv reported adjusted earnings per share of $0.99, with revenue up 26% year-on-year to $2.35 billion. Both exceeded the forecast. The company noted that its pipeline increased from the third quarter, “reflecting the strength of data center project activity.”

CEO “full of confidence in Vertiv’s growth trajectory”

CEO Giordano Albertazzi said that as AI technology becomes more common, demand for data centers will climb, so he is “confident in Vertiv’s growth trajectory”. Albertazzi added, “In the increasingly efficient data center industry, we continue to bring the key digital infrastructure technologies, speed and scale needed to support this rapidly growing market.”

Along with others in the U.S. AI industry, Vertiv shares sank on Word late last month Chinese startup DeepSeek Compared with American companies, using AI platforms with much cheaper chips. Stock prices recovered a certain amount of earnings from that slide, even though they dropped 9% today, they increased their value by more than 80% last year.