Here's Why This Nvidia Partner's Stock Surged in June

S in data center equipment company Vertiv (VRT 2. 82%) surged by 19% in June, according to data vided by S&P Global Market Intelligence

The move comes as the market's concerns over a slowdown in data center capital spending have been assuaged by positive news flow from companies Vertiv's partner, data center architecture company Nvidia (NVDA 1

The bulls and bears debate AI/data center spending No one s piling into the market at the top of a bull market, especially not in the nology sector, where the cyclicality of boom and bust seems to prevail

For the bears, the boom in data center and artificial intelligence (AI)-related spending is set for a natural correction

Additionally, the uncertainty created by the tariff conflict is perceived as potentially causing a pause in spending on data centers

For the bulls, spending on data centers is still in its early innings

In addition, the need for data center capacity to catch up with the demand trend in AI application-related spending will boost spending for many years to come

Meanwhile, the bulls will point to the fact that Vertiv raised its full-year 2025 sales guidance to a range of $9. 325 billion to $9. 575 billion, compared to a prior range of $9. 125 billion to $9. 275 billion, as announced in the company's first-quarter earnings presentations in April

What changed in June To stay informed developments in the data center and AI market, it's a good idea to the perspectives of hyperscalers and market service viders, as well as examine anecdotal statements and trading conditions

As previously discussed, a host of information suggests that the market remains strong

Image source: Getty Images

Moreover, it's essential to note that while companies Nvidia are subject to export control regulations on their nology sales to China, Vertiv's power, cooling, and infrastructure solutions for data centers don't face the same kind of restrictions

In fact, the major blem Vertiv faces from the tariff conflict is rising costs associated with ducts sourced from Mexico and China, areas where management is already rebalancing to mitigate risk

All told, the confirmation of growth in Vertiv's end was a positive for the stock in June, and it remains a great way to play the data center spending boom

Lee Samaha has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Nvidia

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