Here's Why Data Center Equipment Company Vertiv's Stock Fell in February
According to data provided by S&P Global Market Intelligence, shares in data center infrastructure company Vertiv (NYSE: VRT) declined by 18.7% in February. The decline is due to two interconnected factors. First, there was the general sell-off in artificial intelligence (AI) and data center-related stocks, and second, Vertiv's fourth-quarter earnings report, released on Feb. 12, disappointed some investors. Here's the lowdown.The news that Chinese start-up DeepSeek had released its AI model, which it believes is a fraction of the cost of U.S.-based models, sent shockwaves through the market. The fear is that the growth of DeepSeek's AI would lead to a negative revision in expectations for AI-driven data center spending.That's why any stock related to the investment theme took a hit, from power generators to chip designers to power equipment suppliers. Data center equipment companies like Vertiv also took a hit.Continue reading
According to data provided by S&P Global Market Intelligence, shares in data center infrastructure company Vertiv (NYSE: VRT) declined by 18.7% in February. The decline is due to two interconnected factors. First, there was the general sell-off in artificial intelligence (AI) and data center-related stocks, and second, Vertiv's fourth-quarter earnings report, released on Feb. 12, disappointed some investors. Here's the lowdown.
The news that Chinese start-up DeepSeek had released its AI model, which it believes is a fraction of the cost of U.S.-based models, sent shockwaves through the market. The fear is that the growth of DeepSeek's AI would lead to a negative revision in expectations for AI-driven data center spending.
That's why any stock related to the investment theme took a hit, from power generators to chip designers to power equipment suppliers. Data center equipment companies like Vertiv also took a hit.
