According to the Charts, This Nvidia Derivative is Poised for a Sharp Move

After yesterday’s headline-grabbing announcement that Nvidia will invest $100 billion into OpenAI, many investors are still digesting what this means for the future of artificial intelligence and the broader tech landscape.

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The big question is whether AI will truly live up to the grand promises often made by industry leaders curing cancer, tackling climate change, reshaping education, mining asteroids, or delivering personal robots that outperform humans. While no one can know for sure, history suggests optimism pays better than skepticism. As the saying goes, wealthy pessimists are hard to find.

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When searching for this week’s top investment idea, I focused on five key industries that form the backbone of the AI revolution:

1. Semiconductors and advanced computing hardware
2. Data center infrastructure and cloud services
3. Energy and power generation
4. AI software, models, and platforms
5. Cooling and environmental control systems

I had compelling names lined up from the first four categories, but today I want to shine a light on a slightly under-the-radar opportunity in the fifth: Vertiv Holdings (VRT).

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This choice comes against a strong market backdrop. The XLK Technology ETF has surged 63% from its lows earlier this year and another 10% from this month’s bottom. In such an extended rally, it makes sense to consider names in supporting industries that still have room to run.

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For context, just last month I highlighted Bloom Energy (BE), also part of the electrical equipment group. That stock has skyrocketed more than 80% since then a reminder of how quickly overlooked players in this sector can move.

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What Vertiv Brings to the Table

Vertiv specializes in critical infrastructure and services that keep data centers running smoothly. Its offerings span power management systems, cooling solutions, and monitoring software designed to ensure consistent uptime. Importantly, Vertiv isn’t just focused on traditional power generation it’s also investing in renewable energy and battery storage, positioning itself as a long-term player in the evolving data infrastructure ecosystem. In short, Vertiv helps keep the world’s largest data centers online, cool, and efficient.

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Adding to its credibility, Vertiv deepened its ties with Nvidia in March 2024 by becoming a Solution Advisor: Consultant in Nvidia’s partner network. This partnership establishes Vertiv as a go-to expert in power, cooling, and infrastructure for customers deploying Nvidia-powered AI solutions.

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From a technical perspective, Vertiv’s weekly chart shows the stock consolidating under a triple top between $154 and $157, forming an inverse head-and-shoulders pattern. Unlike the traditional version, which signals a reversal, this formation often indicates the continuation of an uptrend.

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For a breakout above $157, I’m watching for two signals:

• A rising VRT/SPY ratio, showing Vertiv outperforming the S&P 500.
• A surge in trading volume above the 50-day average of 39.38 million shares. A 50 million-share breakout day would be a strong confirmation.

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Fundamentals back up the technicals. Analysts project top-line growth of 25% this year and 15% in 2026, with earnings forecast to climb from $3.27 in 2025 to $4.42 the following year representing growth of 155% and 35%, respectively.

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Zooming into the daily chart, we see a smaller fractal version of the same inverse head-and-shoulders pattern, reinforcing the larger weekly setup. The breakout zone remains the same, around $154–$157, with the potential to drive shares toward $200 in the coming months.

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At Inside Edge Capital, we recently rebalanced our flagship portfolios, increasing Vertiv’s allocation from 1.5% to 2.5%. For our longer-term strategies, this represents a steady conviction.

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However, in our Active Opps portfolio, which is designed for more tactical trades, I may look for a breakout play. My plan would be to enter with stops just below $135 and target a move above $165, building momentum into earnings season.

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Speaking of earnings, mark your calendar for October 22, when Vertiv is expected to report $0.87 per share a staggering 89% increase from the same quarter last year.

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As AI investments accelerate, much of the spotlight naturally falls on giants like Nvidia. Yet behind the scenes, companies like Vertiv Holdings are providing the essential infrastructure that makes AI possible.

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With strong fundamentals, bullish technical setups, and strategic positioning within Nvidia’s partner ecosystem, Vertiv represents a compelling way to play the AI boom without chasing the most obvious names.

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For investors looking to diversify within the AI value chain, Vertiv offers a mix of growth potential and a slightly lower volatility profile an appealing combination in a market that’s already running hot.

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