Vrt stock took a hit on the markets today, with its stock dropping more than 11% after Amazon Web Services rolled out its own custom cooling tech for high-performance AI servers.
The news caught investors off guard and sparked fresh concerns about Vertiv’s position in a fast-evolving data center landscape.
The drop in Vertiv’s stock underscores growing worries that AWS’s latest move could chip away at a key source of revenue.
Liquid cooling makes up roughly 10% of Vertiv’s overall sales, and AWS has long been seen as a crucial customer in that space.
Now, with the cloud giant building its own systems, there’s real concern that others might follow, leaving Vertiv to defend its market share in an industry that’s shifting fast.
Here’s why Vrt stock crashed today?
The drop in Vertiv’s stock came after the Amazon Web Services launched its custom-built In-Row Heat Exchanger (IRHX) cooling system.
For years, AWS has relied on players like Vertiv to supply high-end liquid cooling gear, but this move could change that.
Designed specifically to support Nvidia’s latest AI GPUs, the in-house solution suggests AWS may be looking to reduce its dependence on third-party vendors and that puts Vertiv’s relationship with one of its biggest customers in question.
To be sure, Vertiv is holding up well as its hefty backlog, up 25% from last year and growing ties with AI heavyweights like Nvidia have cemented its spot in the middle of the AI infrastructure surge.
But the race is far from over.
Rivals like Super Micro and Dell are stepping up with their own liquid-cooled, AI-ready systems, putting added pressure on Vertiv to keep pushing the envelope and hold onto its lead.
What analysts say?
Barclays analyst Julian Mitchell recently bumped his price target on Vertiv from $90 to $110, keeping an “Equal-Weight” rating.
But with AWS now developing its own cooling tech, there’s a real chance investors may start rethinking the risk tied to Vertiv’s future growth.
The outlook from Zacks still paints a strong picture with 2025 revenue projected to reach $9.51 billion, up nearly 19% year-over-year, with earnings per share expected to climb 24.6% to $3.55.
Even so, those forecasts could face pressure if AWS’s pivot signals a broader shift toward in-house solutions across the industry.
For now, Wall Street remains bullish. Fifteen analysts rate Vertiv a “Strong Buy,” and the average 12-month price target sits at $134.79 an almost 12% upside from where the stock is today.
Still, with the landscape changing fast, investor sentiment may grow more cautious in the weeks ahead.
Vertiv’s sharp drop today highlights the risks of leaning too heavily on a handful of big customers especially as cloud giants like AWS move toward building more of their tech in-house.
Analysts are still upbeat about Vertiv’s long-term potential, but AWS’s latest announcement serves as a clear reminder: the AI and data center space is shifting fast, and established vendors aren’t guaranteed a front-row seat.
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