AI’s Most Watched Cooling Stock Has Fallen for 11 Straight Days: Analysts Now See a 50% Upside
Key takeaways
- VRT’s 11‑day slide reflects higher financing costs for AI infrastructure, but analysts still see upside, suggesting a potential rebound if borrowing costs ease.
- VRT down 20% over 11 days
- Stock price $204
- 10‑year Treasury yield 5.33%
What happened
Vertiv Holdings Co. (VRT) fell for an 11th straight session, the longest losing streak since its 2020 listing, dropping nearly 20% to about $204. The decline began on Oct. 6 after a wave of higher inflation data and rising Treasury yields that pushed up the cost of capital for AI data‑center infrastructure. The company’s Q2 earnings beat expectations, but investors still sold, and the stock slid 17% on the earnings release.
Why it matters
The streak shows how macro‑driven financing costs can outweigh solid earnings growth for AI‑infrastructure firms. It also highlights that even a company with strong revenue and earnings guidance can be pressured by broader market sentiment around borrowing costs and AI demand. The 11‑day run is the longest for any…
Short-term and longer-term
Short-term. In the next few days, watch for the Fed’s rate announcement and Vertiv’s Q3 earnings.
Longer-term. Over the coming months, the focus will be on whether the high financing costs for AI infrastructure persist.