Why Vertiv Stock Was Pulling Back Today
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S of Vertiv (VRT -5. 89%), which makes infrastructure for cooling and power systems for data centers, were heading lower today on reports that Amazon could be challenging the company...
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July 10, 2025
02:12 PM
The Motley Fool
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S of Vertiv (VRT -5. 89%), which makes infrastructure for cooling and power systems for data centers, were heading lower today on reports that Amazon could be challenging the company in cooling nology
ET, the stock was down 7. 3% on the news
Image source: Getty Images
Vertiv faces new competition Vertiv has been a big winner from the data center boom so it's not surprising to see Amazon trying to muscle in on its territory
In a blog post yesterday, Amazon touted an advance in liquid cooling for its P6e-GB200 Ultra Servers, an imvement from previous air cooling
That nique allows for higher compute density, which will make it easier for its customers to get up and running with Nvidia Blackwell GPUs on Amazon Web Services (AWS)
Last month, Amazon announced it had developed a new custom liquid cooling system in just 11 months, and it now seems to be deploying that nology as yesterday's announcement indicates
Amazon also said that the company had considered multiple liquid cooling solutions from other vendors, but realized they weren't a good fit for AWS
That was not a direct on Vertiv, but investors may be interpreting it that way
It's un if Amazon plans to sell the nology, but just using it for AWS would be enough to make waves in the data center market
AWS is still the biggest cloud infrastructure vider, meaning it has the greatest demand for computing power
What it means for Vertiv The implication for Vertiv isn't at this point, but the stock is up roughly 10 times from where it was in 2022 before the artificial intelligence (AI) boom started
It's been seen as one of the most direct winners from AI, and is seeing strong growth with 25% organic net sales growth in the first quarter
For the near term, Vertiv's spects look solid, but Amazon could look to challenge it in other ways as well, which could present greater blems for the growth story
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors
Jeremy Bowman has positions in Amazon and Nvidia
The Motley Fool has positions in and recommends Amazon and Nvidia
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