The battle for artificial intelligence dominance isn’t just about who makes the smartest software—it’s also about who builds the best foundation to keep those AI systems running smoothly. Two companies, Supermicro and Vertiv, have emerged as unlikely rivals in this billion-dollar race, each playing a vital role in powering the AI revolution.
Think of data centers like massive office buildings filled with computers. Supermicro builds the actual computers and servers that run AI programs, while Vertiv creates the power systems and air conditioning that keep everything cool and running. It’s like one company makes the cars while the other builds the roads and gas stations.
One company builds the AI engines while the other creates the infrastructure to power and cool them.
Both companies have formed partnerships with NVIDIA, the chip giant behind many AI breakthroughs. Supermicro designs computer systems specifically built around NVIDIA’s powerful processors, including their newest Blackwell chips. Meanwhile, Vertiv focuses on creating cooling and power solutions that can handle the intense heat and energy demands these supercharged computers create.
The numbers tell an interesting story about their competition. Vertiv reported impressive growth with $2.04 billion in revenue during the first quarter, showing 24% growth and healthy profit margins. Their order backlog reached $7.9 billion, suggesting customers are lining up for their products. Vertiv achieved an adjusted operating margin of 12.5%, demonstrating improved efficiency and profitability in Q3 2024.
Supermicro, despite gaining nearly 80% in stock value recently, has faced some challenges with slower revenue growth in recent quarters. Vertiv’s manufacturing strategy includes shifting 90% of production to USMCA-compliant facilities outside China to reduce potential tariff exposure.
What makes this rivalry particularly fascinating is how different yet complementary these companies are. Supermicro trades at 13 times its earnings with analysts setting price targets around $62, while Vertiv trades at 10 times earnings with potential reaching $60 or higher. Both companies have seen their stock prices soar as investors recognize the growing importance of AI infrastructure. Both companies also maintain retained earnings on their balance sheets that represent cumulative profits reinvested for future growth and expansion opportunities.
The real winner in this competition might be the entire tech industry. As AI becomes more powerful and widespread, both the hardware that runs it and the infrastructure that supports it become increasingly valuable. This unexpected rivalry is quietly shaping the foundation of our digital future.
