In the two years since the launch of ChatGPT, the stock market has experienced significant growth, with some companies benefiting more than others. While megacaps such as Nvidia have surged in value, a lesser-known Ohio-based cooling technology company, Vertiv Holdings, has emerged as the biggest winner. Vertiv has rallied 861% over the past two years, with its stock surging 165% in 2023 and more than tripling in size since the start of 2024.
Vertiv’s success can be attributed to its role in providing cooling equipment and infrastructure for power-hungry data centers, which are fueling the AI boom. As demand for data center infrastructure has climbed, Vertiv’s products have become increasingly important for managing every aspect of data center needs.
Other companies that have benefited from the AI trend include Nvidia, Advanced Micro Devices, and Broadcom, which have surged 722%, 90%, and 208%, respectively, since ChatGPT’s launch. However, not all companies have fared well. Education technology platforms such as Chegg and call center companies are now deemed threatened by the advent of AI, while Intel has underperformed, with its shares down 19%.
Despite the volatility, investors remain optimistic about the future of AI and its potential to drive growth. According to Jefferies, capital spending on artificial intelligence has outpaced the S&P 500 by 230% in the past two years, and the firm expects this trend to continue. As the technology continues to evolve, companies that are well-positioned to benefit from the growth of AI are likely to continue to thrive.