Chi — Week of July 25, 2026

(1) Core long argument: Vertiv is a pure-play beneficiary of the multi-year AI capex supercycle, providing critical liquid cooling and power management infrastructure that is supply-constrained amid exploding GPU cluster deployments by hyperscalers (Microsoft, Meta, Google, Amazon). Order backlog and pricing power remain robust, positioning the company for multiple years of 25%+ top-line growth with operating leverage driving outsized EPS expansion. Valuation at ~45x forward EPS is justified by 50%+ growth rates and sector leadership. (2) Near-term catalyst schedule (next 10-15 trading sessions from 7/25/2026): Q2 2026 earnings release and conference call on July 29, 2026 - expected to be strongly supportive if management reiterates or raises full-year guide given continued AI order strength (historical beats have driven 5-15% post-earnings moves). No other major events (no ex-div, no regulatory). (3) Stock declined ~4.5% on July 24 but 5-day move was under 5% in absolute terms; current price remains a sound entry as the dip appears driven by broad sector rotation rather than company-specific news, with earnings acting as a positive re-rating catalyst and analyst targets implying 20%+ upside within 1-3 months.

(1) Core long argument: Credo is at the epicenter of the AI connectivity bottleneck, supplying essential high-speed, low-power links that enable efficient scaling of GPU clusters where traditional copper and optical solutions fall short. With AI model sizes and training clusters growing exponentially, demand for its AEC and retimer products is accelerating faster than supply, driving 100%+ revenue growth, margin expansion, and share gains. Current valuation does not fully reflect multi-year runway as AI capex remains in early innings. (2) Near-term catalyst schedule (next 10-15 trading sessions from 7/25/2026): No major scheduled events (earnings expected early September); sector momentum from peers' reports or AI conferences would be neutral-to-supportive; focus remains on continued order momentum and potential new design win announcements. (3) Stock has experienced volatility with periods of double-digit weekly moves earlier in 2026 but recent 5-trading-day move was under 10%; entry at current levels is attractive as the pullback reflects macro rotation, not fundamental weakness, and provides a better risk/reward ahead of continued AI tailwinds and September earnings.

(1) Core short argument: Intel's structural challenges in manufacturing competitiveness and product innovation are not resolved by one earnings beat; high valuation (forward P/E >30x on depressed earnings) leaves little room for error as AI capex shifts away from traditional CPUs. Recent rally appears unsustainable given ongoing negative revisions and foundry losses projected to continue into 2027. (2) Short interest is low at ~2.8% of float with minimal squeeze risk due to ample liquidity and low borrow fees. (3) Near-term catalyst schedule: Q2 earnings were released July 23, 2026; no other major events scheduled. This is neutral to the short thesis as focus shifts to execution on guidance. (4) The stock has risen >10% in the past 5 trading days, creating momentum headwind; however, continuation lower is more likely than a mean-reversion bounce because the surge was hype-driven relief rather than fundamental improvement.