Jim Cramer on Vertiv and GE Vernova: Data Center Demand is Strong

Vertiv's Strong Business Performance

• 💡 Vertiv's business is described as "on fire," contrary to misinformation suggesting a slowdown in data center demand.
• 🎯 The CEO of Vertiv, Scott Straz, indicates that despite the appearance of hyperscalers scaling back, orders are actually increasing.

Hyperscaler Strategies and Order Books

• 🔍 Hyperscalers like Microsoft and Amazon Web Services (AWS) employ a strategy of playing games with their capacity build-outs to avoid revealing their true intentions to competitors.
• 🗣️ Scott Straz emphasizes that he is the "keeper of the order book," which is currently "fabulous," indicating robust demand.

Misconceptions About Data Center Demand

• ⚠️ Cramer refutes the idea that hyperscalers are cutting back on data center construction, stating that this is a misconception.
• 💰 He suggests that Microsoft's increased capital expenditure might be related to investments in OpenAI, which requires significant capacity.
• 📈 The bear thesis against these stocks is challenged, with Cramer advising them to rethink their game plan based on the strong order book.