COLUMBUS, Ohio - Vertiv (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, in collaboration with NVIDIA (NASDAQ:NVDA), has announced the release of a new 7MW reference architecture for the NVIDIA GB200 NVL72 platform. This architecture aims to support the rapid deployment of AI applications in data centers, optimizing for performance, resiliency, and efficiency.
The reference design focuses on end-to-end power and cooling infrastructure to meet the demands of AI data centers, which are more complex than traditional computing facilities. Vertiv's CEO, Giordano Albertazzi, expressed pride in the partnership's ability to provide AI-ready infrastructure that can adapt to dynamic workloads and future data center needs. NVIDIA's CEO, Jensen Huang, highlighted the collaboration's potential to revolutionize computing and establish AI factories that produce digital intelligence.
The reference architecture includes Vertiv’s MegaMod™ CoolChip for turnkey AI critical infrastructure deployment, which can be up to 50% faster than onsite builds. It also features space-saving power management solutions like the Vertiv™ Trinergy™ UPS and Vertiv™ EnergyCore lithium battery cabinet, offering reliable power management in significantly less space than legacy systems.
For cooling, the architecture integrates liquid and low-GWP air cooling technologies, which can result in up to 20% lower annual cooling costs. Additionally, the design includes dynamic workload management with integrated load averaging via lithium-ion batteries and next-generation UPS systems.
Vertiv's reference architecture is part of the Vertiv™ 360AI portfolio, which provides integrated solutions for power and cooling in AI and high-performance computing applications. The company boasts a global reach with approximately 4,000 field service engineers to support installations and operations.
The new design will be showcased at the OCP Summit, where Vertiv experts will be available for discussions. The reference designs are accessible on Vertiv's website, illustrating the company's commitment to enabling AI-driven data centers.
This announcement is based on a press release statement and provides a glimpse into the future of data center infrastructure development, where AI applications are becoming increasingly prevalent. Vertiv and NVIDIA's collaboration indicates a strategic move to cater to the growing need for specialized infrastructure in the age of accelerated computing.
In other recent news, Vertiv Holdings (NYSE:VRT) Co. reported a significant 14% increase in Q2 organic sales, primarily driven by growth in the Americas and EMEA regions. The company's adjusted operating profit rose to $382 million, with margins expanding to 19.6%. Following these results, Vertiv raised its full-year guidance, indicating a positive outlook.
In the realm of financial analysis, Jefferies initiated coverage on Vertiv with a Buy rating and set a price target of $125.00, citing the company's strong position in the liquid cooling market. BofA Securities maintained a Buy rating on Vertiv shares, with a consistent price target of $115.00, while TD Cowen raised the stock's price target, reflecting sustained demand in the hyperscale data center market.
In addition to financial growth, Vertiv has also expanded its physical footprint with the opening of a new manufacturing facility in Pelzer, South Carolina. This expansion aims to meet the increasing demand for its products. Furthermore, Vertiv recently appointed Frank Poncheri as the new Chief Human Resources Officer, signaling a focus on talent acquisition and employee development. These are the latest developments in Vertiv's ongoing growth trajectory.
InvestingPro Insights
Vertiv's recent announcement of its collaboration with NVIDIA to develop AI-ready data center infrastructure aligns well with the company's strong financial performance and market position. According to InvestingPro data, Vertiv has shown impressive growth, with a revenue increase of 12.66% in the last twelve months as of Q2 2024, reaching $7.2 billion. This growth is likely fueled by the increasing demand for advanced data center solutions, particularly in the AI sector.
The company's focus on innovative, efficient solutions is reflected in its financial metrics. Vertiv's EBITDA growth of 53.21% in the same period demonstrates its ability to improve profitability while expanding its product offerings. This strong performance has not gone unnoticed by investors, as evidenced by the stock's remarkable 187.91% price return over the past year.
InvestingPro Tips highlight that Vertiv's net income is expected to grow this year, which could be partly attributed to the success of initiatives like the new reference architecture for AI data centers. Additionally, the company operates with a moderate level of debt, potentially providing financial flexibility to invest in future innovations and partnerships.
It's worth noting that Vertiv's stock has shown strong returns over various time frames, including a 31.11% return in the last month alone. This suggests that the market is responding positively to the company's strategic moves in the AI infrastructure space.
For investors interested in a deeper analysis, InvestingPro offers 17 additional tips for Vertiv, providing a comprehensive view of the company's financial health and market position.
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