I'm Buying Every Share I Can.

Hey, welcome back subscribers. My name is Ali. This is my world of stocks. And hey, today we're going to be talking all about one of my new favorite AI stocks to really be um uh tracking here now. And that is in Vertip, ticker symbol VRT. Now, the reason why I want to talk to you guys about this one today is because I was actually going to include them in my three stocks on sale series for the month of September. But one of our Discord members was was asking me more about it. And you know, the more research that I did on this company and the stock, I just really kind of did a deep dive into it. I started doing more research, stayed up really late at night and just looking at all of their fundamentals, everything going on with them. And the more that I looked into them, um, the more I just really started to feel like, man, this is really looking like a great value here that it probably deserves like its own kind of separate video for me to really break down everything that's going on with this. So, um, yeah, shout out to, uh, Vtor, by the way, who was asking me about it. One of our newest, um, Discord members. Um, by the way, I I love that name, Vtor. Uh, it reminds me of Vtor Belelffort, the MMA fighter, Brazilian, I believe. Um, and Vtor, you got to remind me um, in our Discord are I think he mentioned that he's from Portugal. So, that kind of you can see the connection there with Brazil. Anyway, I'm getting way off track here. Um, oh, also sorry for this, but I do just want to say a quick apology to Matt and ENR from our Discord, uh, because I'm taking very long to make their video request. Um, they left some great comments asking about AI energy stocks and for stocks, uh, basically for every layer of like the AI ecosystem. And I I really liked those ideas for videos, so I'd be more than happy to do those videos for you. I apologize for taking so long on it. I 100% am still planning to make those videos for you. I'll get them done this month. Um, so please uh just stay tuned for that and I appreciate your patience. I got a little off track. I I've been dealing with so many different types of videos and so many ideas going on in my head that um I got a little sidetracked and I I fell behind on some of the backlog of videos that I need to make for you guys. But yeah, going back to Vertive here for for a second. So, um, initially, like I said, I my plan was to include include them in the three stocks on sale series, which, as you guys know, what I usually do for those episodes is I choose one low risk, one medium risk, and one high-risk option. Uh, but for this month, I was going to put Vertive in the high-risk slot, which I do still consider to be high risk, by the way, this stock here that we're talking about today. So, you have been warned. As always, do your own extensive research and make your own decisions. Don't ever just buy a stock just because someone on YouTube shares their opinion on it. You got to be a responsible adult. You got to put in the effort, do the research on a company, determine if that stock is even a good fit at all for your own portfolio or to add to your watch list to keep track of it. Um, but uh, and I will, by the way, I will cover the risk in this video. We will talk about the risks related to this stock because there are some that are very real that you should be aware of. Um, but as for me, like I said, I was doing my own research on this company and I just started to realize that this is looking more and more like a great kind of like a high-risk but also highreward potential type of play in AI. A little riskier one, maybe a little speculative depending on how you define that term. But for me, it's kind of that type of AI stock that has a lot of potential, could be a little slept on in my opinion. I actually think this one is being slept on. Um, but yeah, the more that I learn about them, the more I realize just, you know, how many great qualities this company has and the stock has, the stock too with the valuation, everything going on with it right now. So that's what we're going to talk about today. So diving into it here, what I really want to start with saying is that you know while the rest of the market has become and you guys know this more so recently the market has become very obsessed with the type of companies that are I guess you know designing and making the actual AI chips and for good reason of course but I just feel that Vert Vertive is a great alternative play for some of that that actually provides so much of the critical infrastructure that keeps those important AI chips running smoothly across the data center. So for those that don't know, this company actually builds much of the heavy physical infrastructure like the massive uninterruptible power supply systems, what we call UPS, but also the busways, the switch gear, the server racks, and even the liquid cooling chillers that fill data center halls. And so these giant thermal cooling and power distribution systems are what modern data centers require in order to stay in operation and function at their absolute best. Now see with all these new AI factories now being built everywhere uh that are generating you know such insane amounts of heat by the way well hyperscalers are constantly looking for solutions that can not only provide giant relief to them but that are also environmentally friendly. In fact, the whole environmental kind of impact of data centers, it really tends to be one of the most hotly debated and even protested kind of aspects about them and even holds back a lot of regulation. There's a lot of issues with it. Well, BERT provides advanced closed loop cooling designs with fluid management services that can run with almost zero ongoing water usage. That's a big deal. And once this heavyduty hardware is physically bolted, you know, into a massive data center, the switching costs can also be incredibly high. Meaning that, you know, those high-paying customers are essentially locked in to Vertip's entire ecosystem of products and ongoing services for years to come. Now, if the business is so critical though, then why would I still consider this to to carry some significant risk that you know you should be aware of? Well, we all know just how much insane amounts of money these tech giants are pouring into AI. But if at any point they suddenly decide to scale back and start cutting their massive capex, then one of these adjacent providers for all of this infrastructure would very likely take a big hit, which is something that is constantly being talked about all over Wall Street, right? Is the this idea of whether the AI, you know, so-called bubble could eventually burst at any point. Now, I don't personally fall very much into that camp thinking that it's going to happen anytime soon or anything kind of uh remotely like that because I fairly strongly believe that AI is more of a transformational technology that is getting embedded into everything that we do in the world and and I just feel like it's really going to revolutionize, I would say, the entire world and the way we think of things and the way we run things. Now, I'm not saying that I support that, by the way. Um, I'm actually I'm not even happy that it's like happening. I don't really trust AI and uh and I have a lot of concerns about it, but I just think that it's a reality that that we're kind of experiencing that we're moving towards. Um, and especially in the business world that is going to slowly start to the the business world, I'm talking about companies are going to slowly start to accept this reality more and more as time goes on. And with it, I just think that the demand for AI will continue to soar through the roof with more and more companies, you know, kind of realizing that if they don't use AI themselves, if they don't adopt it, they really risk falling behind everyone else that is absolutely going to be using it to gain a competitive edge against them. And it's this kind of snowball effect that I just think is going to keep, you know, so many companies wanting to spend more on AI as time goes on because again, if they don't, then their competitors will and they'll eventually fall behind and and even risk going under. But even just the idea of a potential bubble taking place that can eventually burst, well, that I feel is enough to scare investors into panic selling a stock even when it's not necessarily warranted. Take Vertiv for example. This is a company that is absolutely on fire right now. It's firing on all cylinders. Last quarter, for example, they posted about 3.3 billion in sales with giant growth of 24% year-over-year. But because that specific number came in at the lower end of expectations, investors rushed to immediately hit the sell button, causing the stock to plummet by close to 20% in a single day on that report. Now, management explained that they were simply dealing with temporary supply chain issues and some of their execution hiccups on their very complex multi-phase projects. But in a market where AI stocks are sometimes getting priced now for, you know, absolute perfection, well, any type of bump in the road or or execution hiccup is going to trigger a big correction even if it's again not, you know, fully warranted, which in this case and in my personal opin opinion, it absolutely is not. And there's several reasons why I feel this way. Now, first of all, those so-called disappointing sales last quarter was mostly just a timing shift that will push over to the next one anyway. In fact, the business is doing so well right now and all the AI data centers being built that require their products that management actually raised their fullear guidance across the board, projecting now a monstrous 14 billion in total sales for the year, which would be up 37% as well. And more importantly, their actual profits are surging by even larger rates with adjusted EPS soaring by 60% last quarter, which is also raised in their guidance, by the way, along with free cash flow and operating margins, too. And when we look further ahead, Vertip's demand should only be rising higher over time. See, one of the biggest existential threats to the entire AI revolution right now is a lack of electricity. It's estimated that the US alone will need over 230 gawatt of new power capacity over the next 5 years. Well, that's more than double what utilities are expected to currently be able to deliver. And so, as these data centers hit this giant power wall, they're being forced to squeeze out as much computing power as possible out of every single megawatt that they can even get their hands on. Well, that's exactly what where Verive steps in too as they're actively partnering even with Nvidia to build nextgen 800 volt direct current power infrastructure that is specifically designed for Nvidia's newest Vera Rubin accelerators. Now, these 800vt systems are immensely more powerful, costing about 10% less to operate than the standard equipment used today. And so they're deploying this much more highly highly efficient um um standard these products with this massive integrated AI infrastructure with liquid cooling built-in using Nvidia's GB300 systems where by partnering with Nvidia they're really ensuring that they remain tied to the best performing fastest moving parts of the market. And they even acquired um other companies too to to keep this growth coming. They acquired uh new thermal management companies like Thermmo Key and Strategic Thermal Labs, excuse me, to aggressively expand their liquid cooling technologies further. And they even opened recently a new manufacturing plant in Malaysia to expand production of liquid cooling units and pre-fabricated power modules for data centers across all of Asia, too. And that alone should not be slept on, guys. That is a big expansion that is taking place internationally and I think it's going to be a huge growth driver for them in the coming years. It's a very big deal. Now, this is why analysts greatly project both their sales and profits to continue soaring much higher, breaking new record highs all along the way. Well, the result of all of this is that because investors focus on all the fear more recently, well, it's causing the stock to dip by around 35% from the highs and and because of it, Vertip's valuation is actually much cheaper now than you might think. See, Wall Street, I feel, is focused more on the current metrics of of a high PE ratio that sits about 90% higher than the sector. But when you actually factor in all the upcoming future growth, well, their PEG ratio, price to earnings to growth ratio, it drops all the way down to only around one. Now guys, for a PEG ratio to sit at only around one, for a company that is very greatly expanding their sales and profits, breaking record highs by billions of dollars every single year, that is an insanely cheap valuation. In fact, it's 35% lower than the sector median. And that right there is where I think all of the potential kind maybe the like the hidden potential really lies with a stock like this. That's where I think you get kind of that high reward potential. Again, there is risk here and there's even rising competition too from big industrial players like Eaton and uh Schneider Electric as well as other big global infrastructure providers that are now pushing further into data center power distribution too like ABB. But for a long-term investor looking for a more uh like I said maybe speculative whatever kind of high risk but but definitely highreward potential type of stock in AI that is is maybe a bit of a slept on play for it. Um I think this is really one of the better options out there for that. Now, I think it will be volatile, but when I look at that recent dip, the dirt cheap valuation, the tremendous growth, and the deep Nvidia partnerships that increased their mo, I think greatly, I just feel that this really could be um, you know, a greatly slept on play in AI. But again, all of this is just my personal opinion. So, I'd love to hear what you all think about it down below, too. Is this a stock that you think is worth picking up, or do you think all of the risk just outweighs the reward potential even over the longer term? Let me know down in the comments. And hey, if you'd like to request a video yourself, uh, then please consider supporting me on Patreon. Link is down below. For just five bucks a month, you get early commercial free access to all my videos. You get access to our community Discord where I post a new stock purchase every single day. And you even get to request videos just like uh, you know, just kind of like this one too that you know, I was going to talk about this one, but um, just the fact that Vtor was kind of asking me about it too, I was like, "Yeah, you know what? I'm gonna just make a separate video for it because like I said, the more I researched this company, the more I I started to really like it. So, um yeah, we'll see where it goes. But hey, thanks again for stopping by, my friends. I hope you enjoyed this video regardless. And uh I've got definitely more videos coming for you soon. So, make sure you subscribed and uh I'll catch you guys in the next one. All right, take care, my friends. Bye-bye.