Vertiv's results reinforce strength in the data center power and cooling supply chain

Overview

This report uses Vertiv's first-quarter 2026 earnings call as the catalyst to assess the implications for Greater China technology hardware, particularly the data center power and cooling supply chain. The core conclusion is that Vertiv's commentary on orders, growth guidance, system-level integration, and the 800 VDC architecture reinforces demand visibility and the growth thesis for Asian peers in 2026-2027.

Core views

The report's core views include: first, Vertiv raised its 2026 organic sales growth guidance to 30% YoY, indicating that demand for data center power and cooling remains strong; second, most relevant Asian peers are expected to post more than 30% YoY revenue growth in CY2Q26, mutually corroborating Vertiv's comments; third, although additional capacity is still needed, scale effects and a more favorable product mix should support margin expansion; fourth, system-level integration and integrated power-cooling solutions will become the decisive factor in the next phase, while the 800 VDC architecture will expand opportunities for relevant companies in 2027 and beyond.

Analysis framework

The report adopts an earnings read-through approach, mapping disclosures from Vertiv's 1Q26 conference call across covered Greater China technology hardware companies, with a focus on how revenue growth, order visibility, backlog, pricing, capacity, margins, and product technology roadmaps affect supply chain companies.

Methodology notes

• Earnings read-throughMapping overseas leaders' results to the Asian supply chain

  Using Vertiv as a leading sample of data center power and cooling demand to infer order and growth trends for related Greater China hardware suppliers.

  Vertiv is representative in the U.S. data center power and cooling market, and its growth guidance, orders, and technology roadmap can serve as external validation of industry conditions for Asian peers.

• Industry chain comparisonComparison of integrated power and cooling solutions

  Comparing the degree of benefit for equipment suppliers from system-level integration, turnkey solutions, and the 800 VDC architecture.

  The report believes that beyond single-component capabilities, the ability to integrate power and cooling will determine suppliers' competitive positioning in AI data center construction.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• VERTIV HOLDINGS CO (US.VRT)

  Overseas leader and read-through sample

  Strengths

  Raised 2026 organic sales growth guidance to 30% YoY, with orders and backlog expected to grow YoY, while its system-level integration and 800 VDC positioning strengthen long-term opportunities.

  Weaknesses

  The report mainly focuses on its implications for the Greater China hardware supply chain and does not provide a standalone valuation analysis.

  Comparison

  Its commentary is consistent with high-growth expectations for Asian power and cooling peers.

  Risks

  Industry capacity expansion, execution timing, product mix changes, and technology roadmap transitions may affect subsequent performance.

• Delta Electronics Inc. (2308.TW)

  Key beneficiary, rated OW

  Strengths

  Has strong comprehensive capabilities in data center power and cooling solutions and stands to benefit from system-level integration and the 800 VDC trend.

  Weaknesses

  Still needs sustained capacity investment to meet demand.

  Comparison

  Compared with some suppliers focused on only thermal management or individual components, Delta is more aligned with the integrated solutions thesis.

  Risks

  Capacity expansion progress, pricing changes, and fluctuations in AI data center capital expenditure.

• Asia Vital Components Co. Ltd. (3017.TW)

  Key beneficiary, rated OW

  Strengths

  Benefits from data center cooling demand and expanding AI liquid-cooling TAM.

  Weaknesses

  Growth realization depends on customer project timing and capacity delivery.

  Comparison

  Within the cooling value chain, it is a more direct beneficiary of data center thermal management upgrades.

  Risks

  Intensifying competition, fluctuations in customer demand, and capacity bottlenecks.

• Fositek Corp (6805.TW)

  Key beneficiary, rated OW

  Strengths

  Listed as one of Morgan Stanley's preferred Greater China power and cooling-related names.

  Weaknesses

  The main body of the report does not disclose more granular company-level drivers.

  Comparison

  Included alongside Delta and AVC in the OW basket, indicating a stronger relative preference than for EW-rated names.

  Risks

  Order realization, valuation volatility, and changes in technology roadmaps.

• Lite-On Technology (2301.TW)

  Relevant name, rated EW

  Strengths

  Has exposure to the technology hardware and power-related supply chain.

  Weaknesses

  Its relative benefit intensity is lower than that of the OW-rated names.

  Comparison

  Its rating is below Delta, AVC, and Fositek, indicating the report has a more neutral view on its relative return potential.

  Risks

  Demand elasticity, product mix, and changes in the competitive landscape.

• Auras Technology Co Ltd (3324.TWO)

  Relevant name, rated EW

  Strengths

  Related to the thermal management and cooling theme.

  Weaknesses

  The report maintains a neutral relative weighting and does not list it as a top beneficiary.

  Comparison

  Compared with AVC and Fositek, the report assigns it a more neutral rating stance.

  Risks

  Competition in cooling solutions, customer concentration, and valuation volatility.

• Sunonwealth Electric Machine Industry Co (2421.TW)

  Relevant name, rated EW

  Strengths

  Has business exposure to cooling and fans.

  Weaknesses

  The report's view on its relative performance is neutral.

  Comparison

  Grouped with Lite-On Tech and Auras in EW, below the OW basket.

  Risks

  Product mix upgrades, pricing pressure, and demand volatility.

Key data

• Vertiv 2026 organic sales growth guidance30% YoYAbove the previous guidance range of 27%-29%.
• CY2Q26 revenue expectations for Asian power and cooling peers>30% YoYThe report says most peers expect revenue growth of more than 30% YoY.
• Orders and backlogExpected to grow YoY in 2026Vertiv expects orders and backlog to rise YoY in 2026.
• 800 VDC product timelinePortfolio launch in 2H26, shipments to begin in 2027Vertiv believes the 800 VDC architecture will become an important part of the market in 2027 and beyond.
• Sector viewIn-LineThe Asia Pacific sector view for Greater China Technology Hardware is In-Line.

Impact & implications

In terms of investment implications, Vertiv's strong results and guidance have increased market confidence in the data center power and cooling supply chain, especially benefiting suppliers with capabilities in power supply, thermal management, system integration, and scaled manufacturing. The report prefers Delta, AVC, and Fositek, believing they are better positioned to benefit from integrated solutions, capacity expansion, and AI data center architecture upgrades; it remains relatively neutral on Lite-On Tech, Auras, and Sunonwealth.

Risks

• Overly rapid capacity expansion in the data center power and cooling industry may put subsequent pricing or margins under pressure.
• If AI data center capital expenditure slows, order growth and backlog conversion will be affected.
• If the rollout and shipment timing of the 800 VDC architecture is delayed, it may weaken the incremental opportunity from technology upgrades in 2027 and beyond.
• Intensifying competition in system-level integration and turnkey solutions may alter profit distribution across the supply chain.
• The report contains multiple regulatory disclosures and potential conflict-of-interest notices, so investors should treat it as a single research source rather than the sole basis for decisions.

What to watch

• Whether Vertiv's subsequent orders, backlog, and 2026 organic sales growth guidance continue to be revised upward or remain intact.
• Whether Asian power and cooling peers' CY2Q26 revenue YoY growth exceeds 30% as expected.
• Whether capacity expansion, gross margin improvement, and product mix enhancement at companies such as Delta, AVC, and Fositek are realized.
• The actual progress of 800 VDC power architecture product launches in 2H26 and shipments in 2027.
• Whether AI data center customers continue shifting toward integrated turnkey power and cooling solutions.