TD Cowen sees slower data center equipment purchasing as negative for Vertiv

TD Cowen analysts led by Michael Elias tell investors that the firm’s channel checks at Nvidia’s (NVDA) GTC event and DCD Connect indicate aggregate data center demand has increased year-over-year, despite more pervasive lease cancellations and deferrals by Microsoft (MSFT) than initially thought. The pullback from Microsoft has created an opportunity for both Google (GOOGL) and Meta (META) to backfill capacity, the firm says. Hyperscale redesigns for higher densities are driving slower DC equipment purchasing, which the firm views negatively for first half orders for Vertiv (VRT), TD added.