The AI rollout continues. Earnings season indicates that many companies are continuing to invest and build in AI projects. While that growth may slow down in a few years, for now, the trend is on.
That means investors should look to buy AI-related plays on any reasonable selloff. Finding high-growth companies and buying them after a quick 10-20% pullback is one way to play the AI trend without buying in at the top.
One AI-related play is the growth of data centers and the hardware needed to operate them. That’s where a company like Vertiv Holdings (VRT) comes into play.
The manufacturer of data center technologies creates everything from power and rack systems to cooling systems, making it a strong winner as AI continues to grow.
Vertiv shares are up over 100% in the past year, but have taken a 20% ding from their recent high. That could create a buying opportunity over the coming weeks for a play into the end of the year.
Action to take: Vertiv shares have already started trending higher since early August, and still have considerable room to run. Shares look like an ideal AI momentum play through the end of the year.
For traders, the December $85 calls, last trading for about $9.65, could see high double-digit returns from further gains through the end of the year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.