Evercore: Vertiv key partner in Amazon's new cloud solution

Evercore ISI maintains an Outperform rating on Vertiv (VRT) after Amazon Web Services announced its new P6e-GB200 UltraServers, featuring in-house liquid cooling solution tailored for Nvidia's Blackwell platform. Evercore believes Vertiv is a key partner in building customized solutions for cloud customers and is providing some components for AWS's solution. While some may see AWS's technology as a competitor, Evercore contends that Vertiv remains a major partner for hyperscale customers.

Evercore ISI has maintained its Outperform rating on Vertiv Holdings Co. (NYSE:VRT) with a price target of $150.00, following Amazon Web Services (AWS) announcement of a new liquid cooling solution. AWS recently unveiled its P6e-GB200 UltraServers, featuring an in-house liquid cooling system designed specifically for NVIDIA's Blackwell platform. This collaboration represents a significant technological partnership, with NVIDIA's market capitalization now reaching $3.99 trillion and EBITDA of $88.25 billion.

The system centers around AWS's In-Row Heat Exchanger (IRHX), which combines liquid and air-based components for thermal management. Vertiv is likely to serve as a key partner in building specific solutions for cloud customers, providing underlying components such as water distribution cabinets, pumping units, and fan coils for AWS's IRHX solution. While some investors might view AWS's new technology as competition to Vertiv's liquid cooling solutions, Evercore believes Vertiv remains a major partner in building customized solutions for hyperscale customers, with its comprehensive portfolio spanning thermal management, power management, and services reinforcing its position in the data center infrastructure market [1].

In other recent news, Nvidia (NASDAQ:NVDA) has been the focus of several significant developments. Goldman Sachs initiated coverage on Nvidia with a Buy rating, setting a price target of $185.00. The investment bank highlighted Nvidia's leadership in accelerated computing and its strong position in the GPU market. Meanwhile, Mizuho noted that Nvidia could see a positive catalyst from potential revenue growth in China, despite current U.S. export restrictions affecting their AI chips. Amazon Web Services introduced custom cooling hardware specifically for Nvidia's latest GPUs, which are used in advanced AI systems. This development supports Nvidia's high-density GPU racks without requiring major data center renovations. Huawei Technologies is attempting to export AI chips to the Middle East and Southeast Asia, potentially challenging Nvidia's dominance in those regions. While Huawei's efforts are still in early stages, Nvidia remains focused on compliance with U.S. export controls by developing a new scaled-down AI GPU chip [1].

These recent developments underscore Nvidia's ongoing efforts to navigate regulatory challenges and expand its market presence. Vertiv's role in providing essential components for AWS's innovative cooling solution highlights the company's strategic importance in the data center infrastructure market.

References:
[1] https://www.investing.com/news/analyst-ratings/vertiv-stock-holds-outperform-rating-at-evercore-amid-aws-cooling-innovation-93CH-4130725