Steve Tusa, an industrial analyst at JP Morgan, dives deep into the bustling industrial sector. He discusses the explosive growth of data centers and the innovative technologies enabling them. Tusa shares insights on the rise of Vertiv and its impact on the market. The contrasting fortunes of Honeywell and GE raise questions about strategic direction in a changing landscape. He also highlights the importance of adaptability and the potential of new energy solutions like modular nuclear reactors, all while navigating the complexities of industrial stock growth.
56:20
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Data Centers Drive A Historic CapEx Cycle
Data centers plus utility CapEx form a massive, linked investment cycle driven by hyperscalers and power needs.
Combining data center and grid spending approaches nearly a trillion dollars and unlocks transmission upgrades.
insights INSIGHT
On-Site Power Becomes A Data Center Solution
Data center growth forces new patterns of on-site generation and distributed power solutions.
Companies increasingly build smaller turbines and on-site generation rather than waiting for utility upgrades.
question_answer ANECDOTE
Vertiv Is Mostly A Data Center Business
Vertiv derives roughly 80% of its revenue from data-center-related power and cooling products.
Steve Tusa jokes Vertiv has more data exposure than NVIDIA by revenue, underscoring its hyperscaler linkage.
Get the Snipd Podcast app to discover more snips from this episode
In this episode of The Real Eisman Playbook, Steve is joined by Steve Tusa from JP Morgan to discuss the industrial sector. They discuss the sector’s history and current themes, the rapid growth of data centers, the rise of Vertiv, and the lessons to learn from Honeywell and GE.
0:00:00 - Intro
0:01:56 - The Industrial Sector: History & Themes
0:04:48 - Power Grid Strain & DIY Power Plants
0:06:58 - Vertiv, Eaton, Hubbell, & HVAC Stocks
0:11:56 - History of Vertiv & Their Current Pricing Power
0:21:35 - Will Trump’s Strategy Be Effective?
0:28:57 - Why Honeywell Isn’t the Next GE
0:34:18 - What Went Wrong with Honeywell?
0:38:52 - What Went Wrong with GE?
0:50:55 - 3M & JCI
Connect with Steve Eisman and access all things The Eisman Playbook: 🌐 https://linktr.ee/realeismanplaybook → Follow on socials, watch episodes, and get the latest updates — all in one place.
Disclaimer: The financial opinions expressed are for information purposes only. The opinions expressed by the hosts and participants are not an attempt to influence specific trading behavior, investments, or strategies. Past performance does not necessarily predict future outcomes. No specific results or profits are assured when relying on this content. Before making any investment or trade, evaluate its suitability for your circumstances and consider consulting your own financial or investment advisor. The financial products discussed in ‘The Eisman Playbook' carry a high level of risk and may not be appropriate for many investors. If you have uncertainties, it's advisable to seek professional advice. Remember that trading involves a risk to your capital, so only invest money you can afford to lose. Derivatives are unsuitable for all investors and involve the risk of losing more than the amount originally deposited and any profit you might have made. This communication is not a recommendation or offer to buy, sell, or retain any specific investment or service.
The Real Eisman Playbook