JPMorgan Chase believes two data center-related companies are likely undervalued.
In a new CNBC interview, JPMorgan analyst Steve Tusa says say he is bullish on the industrial sector as it is lifted by hundreds of billions of dollars in hyperscaler capital expenditure (CapEx).
According to Tusa, data center trading is one of the bank’s biggest businesses, and he considers digital infrastructure solutions company Vertiv (VRT) as one of his top picks.
“Vertiv basically entered bear market territory recently. So this is officially a pretty significant dip and a very different value proposition than what we might have seen even two months ago, based on some news flow I would say.
I think news would probably be a generous characterization, a lot of speculation in a negative sense. As far as growth is concerned, I would stick with that.”
The VRT fell to a low of $147 on December 17, after reaching an all-time high of $202.45 in late October, a decline of almost 30%. At Wednesday’s close, the stock is worth $166.87.
Records show that billionaire Ray Dalio’s Bridgewater possess more than $37.77 million in VRT in Q3 2025, a jump of more than 240% from Q2 assets.
JPMorgan Chase is also bullish on Johnson Controls (JCI), a company looking to create smart, healthy and sustainable buildings.
“And Johnson Controls would be the other one outside of Vertiv. [It] still has some exposure to data centers, but a really great operational improvement story, with earnings to grow 15% to 20% over the next few years, and the stock being quite reasonably priced.”
At Wednesday’s close, JCI is worth $121.39.
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