Dr. Stoxx
Stock Trader & Author, Oxford DPhil, Trading Education
Nvidia's rising revenue alongside a much lower P/E is getting hard to ignore. Its chart shows quarterly revenue above $80 billion in Q2 2026 while the P/E is around 30x, down from much higher multiples in prior years. x.comÂ
nVent is a direct beneficiary of every Nvidia Vera Rubin rack deployed, because Nvidia made the NVL72 racks 100% liquid cooled. Each rack needs exactly what nVent makes, liquid cooling hardware and rack-level power protection, so as Rubin ramps through H2 2026 that demand flows into an order book that hit a record $2.6 billion last quarter. Meanwhile nVent compounds quietly at 20% operating margins. x.comÂ
AI data-center spending flows beyond GPUs and operators into networking, optics, power and cooling. Nvidia, AMD, Broadcom and Marvell supply chips; Arista, Nokia and Credo connectivity; Applied Optoelectronics and Lumentum optics; Vistra, Constellation and Bloom power; Vertiv and Modine cooling. Meta's $140B spending this year illustrates the scale, per a commenter with whom the point is agreed. x.com x.comÂ
NVIDIA's valuation fell because earnings grew faster than the stock, not because the business slowed. It trades below 17x forward earnings, near its cheapest in over a decade, with net income expected to grow 99% this fiscal year while the stock is up 22%. Quarterly revenue was $96.2B, up 106%, at a 75% gross margin, and next quarter is guided at $108B with no China data-center revenue. About 70% growth is expected in fiscal 2028, limited by supply, and Vera Rubin is ramping fastest ever. x.comÂ
Vertiv's surging orders and Q3 growth show AI infrastructure demand exceeding expectations. Per WallStEngine, revenue rose 61% to $4.3B, adjusted EPS rose 78% to $2.21, organic orders grew more than 100%, and FY26 guidance was raised above estimates. Vertiv is delivering into accelerating demand for its power and cooling equipment. x.com x.comÂ
Energy and power stocks stand to benefit as Nvidia's CEO says demand will rise 1,000x. Constellation Energy, Vistra, Oklo, Bloom Energy, GE Vernova and IREN are positioned to gain. x.comÂ
Nvidia's official 800 VDC architecture partners stand to benefit as AI racks move to high-voltage DC power. They span GaN and SiC chipmakers Navitas, STMicroelectronics, onsemi and Infineon; conversion and analog suppliers Alpha & Omega, Power Integrations, Texas Instruments, Analog Devices and Monolithic Power, whose VRM chips are already inside Nvidia GPUs; and rack, building and grid power players Flex, Vertiv, GE Vernova, ABB, Eaton, Schneider Electric and Siemens. x.comÂ
Nvidia looks more like Apple than Cisco in 2000, because its demand is more durable and its lock-in stronger. Cisco had a few months of cancellable backlog and over-levered telco customers such as WorldCom and Global Crossing that went bankrupt, and its boxes commoditized. Hyperscalers now hold over $2.3T of cloud backlog stretching years, funded by very strong balance sheets. CUDA, accelerators, networking and systems integration create switching costs behind margins nearly twice Apple's. x.com … Show more
Power Integrations should be very successful over the next one to five years because it makes the only GaN switches needed for NVIDIA's new rack architecture. x.com x.comÂ
Vertiv benefits from every AI data-center buildout because rising rack power makes power management, UPS, distribution and liquid cooling, its core businesses, ever more critical. Wall Street keeps raising estimates, with a consensus target near $375 and revenue seen rising from about $10.8B to over $21B by 2028. NVIDIA's shift to 800V DC power, which Vertiv already supports, and rising liquid cooling add growth. A months-long wedge could break out on Aug 5 earnings if orders and guidance beat. … Show more