Valuing AI Infrastructure: A Quantitative Deep Dive into NVIDIA, Vertiv, and Eaton
AI InfrastructureValuationNVIDIAAI Gold Rush: Valuing the Physical Infrastructure Backbone The artificial intelligence boom, while often perceived through the lens of software and models, is fundamentally a story of immense physical infrastructure demand.
AI Gold Rush: Valuing the Physical Infrastructure Backbone
The artificial intelligence boom, while often perceived through the lens of software and models, is fundamentally a story of immense physical infrastructure demand. From semiconductor design to data center power and cooling, tangible assets are the bedrock of AI's growth. For investors and analysts, this presents a critical question: how do we value the companies building this foundation? This report provides a quantitative breakdown of three distinct players in the AI value chain—NVIDIA CORP (NVDA), Vertiv Holdings Co (VRT), and EATON CORPORATION plc (ETN)—using their latest reported financials to uncover underlying performance and value signals.
The Hyper-Scaler: NVIDIA's Generational Growth
NVIDIA's financial trajectory is nothing short of extraordinary, cementing its role as the primary engine of the AI hardware boom. The company's revenue grew a staggering 125.8% in 2024 to $60.9 billion, and is projected to grow another 114.2% to $130.5 billion in fiscal year 2025. This top-line explosion is matched by remarkable profitability. Net income surged from $4.4 billion in 2023 to $29.8 billion in 2024, a 581.3% increase. This translates to an elite net profit margin, expanding from 48.8% in 2024 to a projected 55.8% in 2025. Furthermore, its Return on Equity (ROE), calculated as Net Income divided by Shareholder Equity, is projected to hit an incredible 91.9% in 2025 ($72.88B / $79.33B), showcasing extreme capital efficiency.
5-Year Income Statement
NVDA · NVIDIA CORP