The Smartest Data Center/AI Stocks to Buy With $2,000 Right Now
Suppose you think of investing a relatively small amount of money in stocks in a diversified portfolio and are looking to spread risk while gaining upside exposure to an exciting growth theme. In that case, the AI/data center space is a good place to start. Vertiv (NYSE: VRT) and nVent (NYSE: NVT) may not spring to mind when thinking about how to profit from the booming demand for artificial intelligence (AI) applications and, in turn, data center spending. However, that observation highlights an opportunity for discerning investors to profit. All three provide crucial solutions and services to data centers and represent hidden ways to play the theme.Vertiv provides digital infrastructure for data centers and communication networks, and its products include power management, switchgear, thermal management, and monitoring and control infrastructure. Emerson Electric sold the company to Tom Gores' private equity company, Platinum Equity, in 2016, which then brought the company to the market in 2020. Its executive chairman is former long-term CEO of Honeywell, David Cote. The company has found itself ideally placed to benefit from the rising interest in data center investment to support application growth, as amply demonstrated by Vertiv's booming backlog growth. That growth continued through the first quarter, with backlog up 10% from the end of 2024.Continue reading
Suppose you think of investing a relatively small amount of money in stocks in a diversified portfolio and are looking to spread risk while gaining upside exposure to an exciting growth theme. In that case, the AI/data center space is a good place to start. Vertiv (NYSE: VRT) and nVent (NYSE: NVT) may not spring to mind when thinking about how to profit from the booming demand for artificial intelligence (AI) applications and, in turn, data center spending. However, that observation highlights an opportunity for discerning investors to profit. All three provide crucial solutions and services to data centers and represent hidden ways to play the theme.
Vertiv provides digital infrastructure for data centers and communication networks, and its products include power management, switchgear, thermal management, and monitoring and control infrastructure. Emerson Electric sold the company to Tom Gores' private equity company, Platinum Equity, in 2016, which then brought the company to the market in 2020. Its executive chairman is former long-term CEO of Honeywell, David Cote.
The company has found itself ideally placed to benefit from the rising interest in data center investment to support application growth, as amply demonstrated by Vertiv's booming backlog growth. That growth continued through the first quarter, with backlog up 10% from the end of 2024.
