Valuation would be my main concern here.
In addition to this, it is difficult to predict the cyclical nature of the AI capital expenditure cycle because the industry is so fresh, but I do expect some cyclicality.
Data centers for AI rely heavily on GPU advancements. As newer, more efficient hardware is developed, companies may delay data center expansions to wait for next-gen chips.
If we do see a slowdown here over the next while, it would likely hit a company like Vertiv. It is a pretty solid company. Double digit returns on invested capital, strong free cash flow, solid operating margins. Very manageable debt levels and a pretty solid balance sheet overall.
Long term I have little doubt there will be more demand for Vertiv's products. I just wonder about the short-term if we see scaled back capital expenditures from many of these companies after a few years of extensive spending.
High reward company that will undergo some significant volatility IMO.