Vertiv (VRT) raises sales targets for 2025 as AI powers 77% EPS surges
Recently I published the list Buy 30 Best AI Stocks, according to the billionaire. In this article, we’ll see where Vertiv Holdings Co (NYSE: VRT) plays against the other best AI stocks, according to the billionaire.
Optimism over the US economy over the past few months, primarily due to AI hype, has been attenuated by recent measures taken by the Trump administration to strengthen US manufacturing. These measures hit global stocks in the form of obscene tariffs on goods imported from the US into the US, with a focus primarily on China, and have become a downward spiral of major indexes. The latest tariff hike has wiped out trillions of market capitalization from Magnificent Seven, a group of seven companies that dominate the Benchmark US Index and invest heavily in AI. The latest report from market research firm IDC shows that if tariffs continue, it is expected to create supply chain disruption and inflation challenges in a variety of markets, including the IT sector. A billionaire-controlled global hedge fund has slashed risky bets and sought safety before Trump introduced new tariffs last week, according to a report from Reuters in the press.
This report is based on data collected by Investment Bank Goldman Sachs. Data shows that hedge funds were drawn from bets in emerging European and Asian markets ahead of the announcement of new tariffs. A study by investment bank Morgan Stanley, seen by Reuters, also reflects these sentiments. Morgan Stanley estimates that the net leverage of the long US short fund had fallen sharply to 37% by the end of last week, a historic low of over 50% at the start of the year. Net leverage measures the difference between a fund’s long and short positions in relation to the value of what it owns, including borrowings. JPMorgan also noted in a recent report that hedge funds’ net leverage has fallen to a low since the second half of 2023. The lower the net leverage, the more conservative the hedge fund’s position. Given the uncertainty of tariffs, investors are hoping for significant volatility in risk assets over the near term, suggesting a continuing risk-off stance.
Visit and learn more about these developments 10 Best AI Data Center Stocks and According to Goldman Sachs, 10 lively AI stocks.
The latest developments represent a reversal of status from the billionaires who have often welcomed AI as the next transformative technology that will shape the future of the economy, industry and society in the past few months. The influential billionaires have repeatedly insisted on making large investments in AI for the immeasurable economic value they promised. The bullish paper was based on research from companies like McKinsey, which predicted that AI could sum up to $4.4 trillion per year in the next few years. For investors, this has been translated into an opportunity to own technology interests that could support the next generation of global growth. For billionaires investors, AI represented both diversification strategies and opportunities to influence the direction of powerful new technology. These investors often employ strategic interests that can shape product development and scaling. Some of the biggest companies that these investors have placed big bets are explained in detail below.
