Finding Longer Term Plays In Data Center Cooling Stocks
Marc Chaikin is a stock analyst and Founder and CEO of Chaikin Analytics. Benzinga's PreMarket Prep is the #1 go-to source for everything you need to know before the market opens! Join our expert hosts as they break down the latest market trends, analyze key indicators, and provide actionable insights to help you navigate the trading day ahead. Watch live every market day on YouTube.
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00:00Mark, so outside of, I guess, those stocks you mentioned, what other industries do you
00:05think have the most capability to be disrupted and increase earnings through AI over the
00:11next few years?
00:12Well, I go to the air conditioning and the cooling companies like Fix, which has been
00:19a big favorite of mine.
00:23And I think that's setting up in a way that the chart doesn't look good right now.
00:29The power gauge is neutral plus.
00:31But I think if that bottom holds, I don't think you'll go down to fill that gap.
00:36They're doing cooling for like data centers, right?
00:40Yeah.
00:41AI data center build outs.
00:43What about VRT?
00:44Have you been watching VRT?
00:45VRT, the chart pattern's a little bit weaker, but yes.
00:49And you're right in that support area where it broke out in May.
00:53So yeah, I love VRT.
00:56Again, these were really overdone, more so, I think, than the NVIDIAs of the world.
01:01And the pullbacks have been bigger.
01:03Well, VRT in the last year has went from $26 to $109.
01:08You're talking about a stock that's up 300 to 400% here over the course of the last year.
01:13So I mean, there may be more upside here, but there's a lot of good news priced in there.
01:17Yep, absolutely.
01:19But I think these are the longer term plays, as you say.
01:22I'm not a five-year kind of guy.
01:25But if you have a three to five-year outlook, these are the stocks that are going to continue
01:30to shine because we need data.
01:34And then take a look at PRIM, PRIMORIS.
01:37We got stopped out of an options trade with a nice profit on that one.
01:42Very similar alternative power for these plants.