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TD Cowen reportedly added that hyperscale redesigns for higher densities are slowing down DC equipment purchasing, which the firm views negatively for orders in the first half of 2025 for Vertiv.
Shares of Vertiv Holdings Co. (VRT) slid over 8% on Wednesday after a TD Cowen report highlighted that slower data center equipment purchasing is seen as a negative for the company in the first half of 2025.
According to TheFly, TD Cowen analysts led by Michael Elias noted that their channel checks at Nvidia's (NVDA) GTC event and DCD Connect indicate aggregate data center demand has risen year-over-year, “despite more pervasive lease cancellations and deferrals by Microsoft (MSFT) than initially thought.”
The analysts said that the pullback from Microsoft has created an opportunity for Google (GOOGL) and Meta (META) to backfill capacity.
However, the analysts noted that these developments have not turned out to be immediately beneficial for Veritv.
According to an investing.com report, hyperscalers are redesigning their facilities to accommodate higher rack densities.
The firm added that hyperscale redesigns for higher densities are slowing down DC equipment purchasing, which the firm views negatively for orders in the first half of 2025 for Vertiv (VRT).
According to the report, TD Cowen’s channel checks showed that orders for leased hyperscale capacity have been pushed back by a quarter or two.
Meanwhile, Barclays lowered its price target on the stock to $100 from $111 and kept an ‘Equal Weight’ rating on the shares.
The company recently launched its unified control platform, Vertiv Unify, designed to simplify, standardize, and streamline data center operations.
The platform provides convenient monitoring, management, and control of critical digital infrastructure for enhanced system performance.
On Stocktwits, retail sentiment surrounding Veritv flipped into the ‘bullish’ territory (59/100) from ‘bearish’ a day ago.
One Stocktwits user with a bullish view expects the stock to hit a support of $82.95.
Another believes the stock is undervalued at current levels.
Vertiv shares have lost over 28% in 2025 but are up nearly 2% in the past 12 months.
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