Bank of America said on Monday that since Nvidia announced its blowout results in May 2023, Nvidia's stock price has risen by about 21%, while Vertiv's share price has soared by about 511% during the same period.
The Zhitong Finance App learned that Nvidia (NVDA.US) has been brought to the center stage of artificial intelligence investment trends, but the stock price of data center equipment manufacturer Vertiv (VRT.US) has surpassed that of this artificial intelligence chip giant in the past year. Bank of America said on Monday that since Nvidia announced its blowout results in May 2023, Nvidia's stock price has risen by about 21%, while Vertiv's share price has soared by about 511% during the same period.
Bank of America Securities stock and quantitative strategist Ohsung Kwon said in a report: “Investments in artificial intelligence involve not only graphics processing units (GPUs), but also power.” “The power required for a GPU is 2-2.5 times that of a CPU, and the expected electricity consumption of data centers under construction in the US is equivalent to more than 50% of the current electricity consumption of US data centers.” The strategist said electricity consumption for AI applications is expected to grow at a CAGR of 25%-33% over the next few years, and this is where data center power and cooling equipment manufacturer Vertiv comes into play.