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Why Vertiv Holdings Plunged in July
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The Motley Fool
Shares of AI infrastructure provider Vertiv (VRT +3.25%) plunged 27.9% in July, according to data from S&P Global Market Intelligence.
Vertiv is one of the main infrastructure suppliers for AI data centers, supplying electricity and water-cooling systems that are becoming increasingly important as the latest AI-powered chips consume more energy.
A combination of prominent short-seller Michael Burry promoting his short bets against AI stocks, the release of China's Kimi 3 open-weight model, and the "blow-up" of AI-focused hedge fund Situational Awareness conspired to send virtually all AI stocks into a tailspin in July.
Vertiv is seen as a key player within the AI data center build-out, providing electrical systems and cooling systems, so it wasn't spared.
While earnings growth beat Wall Street's expectations, even the robust 24% revenue growth figure fell slightly short.