JPMorgan Chase believes two data center-linked companies are likely undervalued.
In a new CNBC interview, JPMorgan analyst Steve Tusa says he’s bullish on industrials as the sector is being lifted by the hundreds of billions of dollars in hyperscaler capital expenditures (CapEx).
According to Tusa, the data center trade is one of the bank’s biggest plays, and he’s looking at the digital infrastructure solutions firm Vertiv (VRT) as one of his top picks.
“Vertiv, just recently, went into basically bear market territory. So this is officially a pretty significant dip and is a very different value proposition than what we may have seen even two months ago, on I would say some news flow.
I think news would be probably a generous characterization, a lot of speculation in a negative sense. I would stick with that on the growth side.”
VRT dropped to as low as $147 on December 17th after hitting an all-time high of $202.45 in late October, marking a nearly 30% decline. As of Wednesday’s close, the stock is worth $166.87.
Data shows that billionaire Ray Dalio’s Bridgewater owns more than $37.77 million worth of VRT as of Q3 of 2025, a jump of more than 240% from its Q2 holdings.
JPMorgan Chase is also bullish on Johnson Controls (JCI), a firm that aims to create smart, healthy and sustainable buildings.
“And Johnson Controls would be the other one outside of Vertiv. [It] still has some data center exposure, but a really tremendous operating improvement story where earnings can grow 15% to 20% for the next few years, and the stock is pretty reasonably priced.”
As of Wednesday’s close, JCI is worth $121.39.
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