Bank of America: Stock price increase far exceeds NVIDIA, Vertiv is the real darling of AI stocks

Nvidia has been pushed to the center stage of the artificial intelligence investment trend, but the stock price of data center equipment manufacturer Vertiv has outperformed this AI chip giant in the past year. Bank of America stated on Monday that since Nvidia announced a surge in performance in May 2023, Nvidia's stock price has risen by about 21%, while Vertiv's stock price has skyrocketed by about 511% during the same period. Ohsung Kwon, stock and quantitative strategist at Bank of America Securities, said in a report, "Artificial intelligence investment involves not only graphics processing units (GPUs) but also power." "The power required by GPUs is 2-2.5 times that of CPUs, and the expected electricity consumption for data centers under construction in the United States is equivalent to over 50% of the current electricity consumption of data centers in the United States." The strategist stated that in the coming years, the electricity consumption of artificial intelligence applications is expected to grow at a compound annual growth rate of 25%-33%, and this is where data center power and cooling equipment manufacturer Vertiv comes into play