10:47 AM EDT, 07/11/2025 (MT Newswires) -- Vertiv ( VRT ) is more likely to collaborate with Amazon ( AMZN ) rather than compete with it regarding the company's liquid cooling offering, UBS said in a Thursday note.

UBS analysts noted that Vertiv ( VRT ) shares fell as much as 14% on Thursday in response to media reports that Amazon ( AMZN ) had launched "a cooling competitor for AI servers." They said that the underperformance fears were "misguided" and that the shares will likely rebound strongly as they did in two previous pullbacks over the past year.

The analysts said that they do not believe Amazon ( AMZN ) is competing with Vertiv's ( VRT ) liquid cooling offering, as this would entail the manufacturing of many components. Rather, the more likely scenario is that Amazon ( AMZN ) would collaborate with Vertiv ( VRT ) to provide an "all-in-one" integrated server-rack offering that streamlines the deployment and management of the hardware needed for AI workloads, they said.

Amazon ( AMZN ) would "most likely" integrate Vertiv's ( VRT ) liquid cooling solutions for its data center racks, which would be a "notable positive" for the company, the analysts said.

UBS reiterated the company's stock rating at buy with a price target of $135.

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