Amazon's In-House Cooling Tech: A Threat to Vertiv's Stock? Analysts Disagree

Vertiv stock fell 6% after Amazon's AWS revealed its P6e-GB200 Ultra Servers with liquid cooling infrastructure. Analysts such as Andrew Kaplowitz and Deane Dray believe the selloff is "overdone" and that the liquid cooling market remains fluid. They expect strong prior orders to support good near-term visibility for Vertiv and nVent, and see the pullback in the stock as a buying opportunity.

Vertiv Holdings (NYSE: VRT) saw its stock price fall by 6.63% on July 1, 2025, following Amazon Web Services' (AWS) announcement of new liquid-cooled servers. The P6e-GB200 Ultra Servers, equipped with liquid cooling infrastructure, have raised concerns among investors about potential in-house production of cooling components by AWS. Vertiv's shares dropped 6.63%, while Nvent Electric (NYSE: NVT) dropped 2.31% against the S&P 500's 0.17% gain [1].

Citi analysts have characterized the sell-off as "overdone," noting that recent order strength should provide good near-term visibility for both companies. Vertiv's competitive advantages, such as its market-leading portfolio in power and thermal management and strong relationships with chip manufacturers, remain largely intact [1]. Amazon's strong financial position, with an EBITDA of $126.14 billion and healthy profit margins, suggests continued investment in data center infrastructure [1].

Vertiv is expected to benefit from the growth of liquid cooling, which is projected to expand from approximately 15% of the thermal market to 30% by 2027 [1]. Citi views the sell-off as a "buying opportunity," highlighting Vertiv's potential as a primary beneficiary of this expansion.

Nvent, with approximately 20 years of experience in liquid cooling, also faces challenges from AWS's proprietary cooling hardware. The company's diversified end-market exposure across infrastructure, industrial, commercial/residential, and energy sectors may mitigate the impact [1].

In other news, Amazon.com (NASDAQ: AMZN) has seen analyst updates and business developments. BofA Securities maintained its Buy rating on Amazon, emphasizing the potential of the Kuiper satellite project [1]. Meanwhile, Citizens JMP raised its price target for Amazon to $285, highlighting Amazon's extensive reach and its ability to drive retail growth through faster delivery and data-driven advertising [1].

Amazon Web Services recently introduced custom cooling hardware for Nvidia (NASDAQ: NVDA)’s latest AI chips, allowing for efficient heat management without major data center renovations [2]. This development includes new computing instances designed for advanced AI model development and deployment. TD Cowen also raised its price target for Amazon to $250, citing expected outperformance in revenue and operating income due to growth in AWS, advertising, and e-commerce segments [1].

Vertiv's stock price has shown resilience, closing at $128.37 on July 2, 2025, marking a +1.97% move from the previous day [3]. The company is anticipated to report an EPS of $0.82, indicating a 22.39% rise compared to the same quarter of the previous year. NTV Asset Management LLC bought a new stake in Vertiv Holdings Co. in the 1st quarter, further indicating confidence in the company's prospects [4].

Analysts and investors alike will be keeping a close eye on Vertiv Holdings Co. in its upcoming earnings disclosure. The company's full-year Zacks Consensus Estimates call for earnings of $3.56 per share and revenue of $9.52 billion, representing year-over-year changes of +24.91% and +18.79%, respectively [3].

References:
[1] https://www.investing.com/news/analyst-ratings/citi-defends-vertiv-and-nvent-stock-amid-liquid-cooling-concerns-93CH-4130807
[2] https://ih.advfn.com/market-news/article/12450/vertiv-shares-slide-11-after-aws-launches-in-house-cooling-tech-for-ai-servers
[3] https://finance.yahoo.com/news/vertiv-holdings-co-vrt-beats-214503003.html
[4] https://www.marketbeat.com/instant-alerts/filing-ntv-asset-management-llc-buys-new-position-in-vertiv-holdings-co-nysevrt-2025-07-09/