Motley Fool Backs Vertiv, Super Micro, Eaton: 3 AI Stocks Up 25-250%

Motley Fool contributor Keith Noonan recommended Vertiv (VRT), Super Micro (SMCI), and Eaton (ETN) as top AI stocks on April 10, 2024. The firms supply power and cooling for data centers.

Bitcoin traded at $78,078 USD, up 1.0% in 24 hours at 14:00 UTC on April 10, per CoinGecko. Crypto Fear & Greed Index stood at 33, in fear zone, per Alternative.me.

Global data centers used 460 TWh of electricity in 2022, matching Japan's total, per International Energy Agency (IEA) report of April 9, 2024. AI model training drove growth. Google and Microsoft filed gigawatt-scale campus plans with U.S. SEC in Q1 2024.

Ethereum traded at $2,353 USD, up 1.8%. XRP stood at $1.42 USD, up 0.3%. BNB reached $632 USD, up 0.7%. USDT held at $1.00 USD. Prices from CoinGecko, April 10, 2024.

AI Increases Data Center Energy Demand

AI models require dense compute clusters. Hyperscalers added 10 GW of capacity in 2023, per IEA. One facility now needs 100 MW baseload power.

Cooling used 40% of energy, per Uptime Institute's 2023 Global Data Center Survey. Liquid cooling rose 25% year-over-year in 2023.

U.S. grid queues reached 2,600 GW by end-2023, per Lawrence Berkeley National Laboratory study of September 2023. Backlogs delay AI projects 4-5 years.

Vertiv Supplies Power and Cooling

Vertiv Holdings (NYSE: VRT) makes uninterruptible power supplies and cooling for data centers. Shares rose 15% year-to-date to $78.50 USD on April 10 close, per Yahoo Finance.

Q1 2024 revenue increased 8% to $1.64 billion USD, per April 24 earnings. CEO Giordano Albertazzi said on earnings call: "AI infrastructure demand exceeds our capacity."

Backlog hit $6.1 billion USD, up 25% from Q1 2023.

Super Micro Computer Builds AI Servers

Super Micro Computer (NASDAQ: SMCI) designs liquid-cooled servers for Nvidia GPUs. Fiscal Q3 2024 revenue doubled to $3.85 billion USD, per April 3 announcement. CEO Charles Liang cited "explosive AI demand."

Shares gained 250% in 12 months to $1,050 USD on April 10. Company shipped 100,000-server clusters to hyperscalers in Q3, per earnings transcript.

SMCI holds Nvidia Elite Partner status for GPU access.

Eaton Provides Electrical Infrastructure

Eaton Corp. (NYSE: ETN) supplies switchgear, transformers, and busways for data centers. Q1 2024 data center backlog reached $11 billion USD, per March 28 earnings call. CFO Thomas Okray said: "Hyperscaler capex doubled our orders."

Shares rose 42% year-to-date to $325 USD on April 10. Eaton expects 10-12% organic growth in 2024 from AI.

• Asset: BTC · Price (USD): 78,078 · 24h Change: +1.0% · Source: CoinGecko, Apr 10
• Asset: ETH · Price (USD): 2,353 · 24h Change: +1.8% · Source: CoinGecko, Apr 10
• Asset: XRP · Price (USD): 1.42 · 24h Change: +0.3% · Source: CoinGecko, Apr 10
• Asset: BNB · Price (USD): 632 · 24h Change: +0.7% · Source: CoinGecko, Apr 10

Fear & Greed Index at 33 Signals Fear

Alternative.me index hit 33 on April 10. Readings below 30 preceded Bitcoin rallies of 20-50% from 2018-2023 data.

Spot Bitcoin ETFs held $52 billion USD AUM on April 9, per Farside Investors.

AI-blockchain projects like Render Network use idle GPUs for rendering tasks.

Energy Deals Support AI Expansion

U.S. CHIPS Act allocated $39 billion USD to semiconductor fabs by Q1 2024. Inflation Reduction Act tax credits aided 20 GW renewables for data centers.

Motley Fool picks VRT, SMCI, ETN rose 25%, 250%, 42% over 12 months to April 10. Nasdaq Composite gained 10% year-to-date.

Data center power contracts reach 2027-2028.