The AI frenzy continues to dominate market headlines, with the DeepSeek news a few weeks back only adding fuel to the fire. Earnings season has given us a better feel on the outlook, with several of the Mag 7 companies doubling down on their rich CapEx plans concerning their AI infrastructure buildouts.

And recently, two stocks with big exposure to AI infrastructure, Super Micro Computer SMCI and Vertiv VRT, delivered quarterly results, providing us with further clarity. Please note that SMCI released its preliminary Q2 results due to internal reviews and compliance checks.

But what did the results say about the outlook? Let’s take a closer look at the results to get some insight into the current AI landscape.

SMCI Sets Lofty Expectations

SMCI shares have bounced back in a big way in 2025 following last year’s plunge, up 38% and widely outperforming relative to the S&P 500. The company expects to report net sales in the range of $5.6 - $5.7 billion, with the midpoint reflecting 54% year-over-year growth.

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The sales growth reflects a strong level of demand, precisely what the company has been forecasting over recent periods. And with over 30% of new data centers expected to adopt its direct-liquid cooling technology over the next 12 months, it’s clear that Super Micro is poised to continue seeing strong growth.

It’s critical to note that the company did trim its current-year sales outlook in the preliminary results, now expecting FY25 sales in a band of $23.5 - $25 billion vs. the $26 - $30 billion previously guided. While the guidance cut certainly raises some eyebrows, CEO Charles Liang sees demand paving the way for $40 billion in sales for FY26, essentially doubling the forecasted 2025 mark and easing the fears surrounding the above-mentioned guidance cut.

Still, we’ll have to wait until Feb. 25^th to receive the full set of quarterly results as the company continues to clear regulatory/compliance hurdles. But the preliminary results do show a nice level of positivity concerning the longer-term demand outlook despite the guidance trim for its current fiscal year.

The EPS outlook for the stock remains modestly cloudy overall, with the stock currently holding a Zacks Rank #3 (Hold).

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For those that can handle high volatility, shares overall reflect a strong long-term opportunity to ride the coming AI infrastructure buildout, with management’s sales outlook for FY26 (next fiscal year) notably bullish.

Vertiv's Superstar Showing Continues

Concerning headline figures in Vertiv’s release, the company exceeded both consensus EPS and sales expectations, with EPS soaring 77% on the back of a 26% move higher in sales. The growth rates here are quite significant, again reflective of healthy underlying demand.

Notably, Vertiv upped its full-year 2025 sales guidance into a band of $9.1 - $9.3 billion, with the midpoint reflecting roughly 16% year-over-year growth. Importantly, Vertiv reaffirmed its five-year financial outlook, citing growing AI adoption as a key driver of data generation and data center demand. The company overall remains to benefit in a big way from providing the critical infrastructure needed to support the expansion.

While shares didn’t see a strong reaction to the release, it’s worth noting that VRT shares were up big heading into the print, with the selling likely reflecting a level of profit-taking. Up nearly 70% over the last year, VRT shares have crushed the S&P 500.

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But over the past three months, shares have lost nearly 10%, perhaps an opportunity for those looking to ride the momentum. Valuation multiples have risen considerably amid higher growth expectations, with shares presently trading at a 34% premium relative to the S&P 500 on a forward 12-month P/E basis. While multiples have become a tad rich, the current 0.8X PEG ratio reflects both growth and value.

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Bottom Line

Both Vertiv VRT and Super Micro Computer SMCI shares reflect great opportunities for investors to ride the AI infrastructure buildout from a longer-term perspective, with demand expected to remain robust. We’ll continue hearing about the AI theme for years, with recent CapEx plans from the Mag 7 companies keeping the party fully alive.

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