Vertiv selloff on AWS blog post overdone, says Deutsche Bank

Deutsche Bank analyst Nicole Deblase says the selloff in shares of Vertiv (VRT) and nVent Electric (NVT) on the Amazon Web Services is overblown. The selloff reflects concerns that AWS is fully manufacturing liquid cooling systems in-house, the analyst tells investors in a research note. However, Deutsche believes liquid cooling suppliers like Vertiv and nVent are working with hyperscalers in their development of proprietary cooling solutions. The firm says AWS designed their own system but does not manufacture it themselves. Deutsche admits that it does not know the specifics about who is working with AWS. Shares of Vertiv are well off the day’s lows but remain down 6% to $120.81. nVent is down 2% to $73.53 in midday trading.