Jim Cramer Says Wait Before Buying the Dip on Vertiv: “You’ll Get A Better Price.”

On a recent Mad Money segment, a caller who identified herself as Sunshine from Florida asked Jim Cramer about Vertiv (NYSE:VRT | VRT Price Prediction). Her framing: “Vertiv took a bigger hit today than my air conditioner does in a Florida summer.“ The stock is down 11.88% in the past month, and she was wondering whether she should buy the dip.

Jim Cramer’s answer was to wait. He acknowledged that Vertiv’s fundamentals remained intact, but sellers might still have more to unload.

“You’ll Get a Better Price”: Why Cramer Says to Wait Before Buying the Dip

Cramer’s read on the tape: “Vertiv is in speculative hands right now. The speculative hands are being margined out.” His follow-up was equally direct: “They’re going to get rid of them, and you’ll get a better price if you want to buy.“ On timing, he suggested the bottom was close but not in, telling the caller, “We’re not far from it, but we’re not there yet.”

Vertiv opened the week on July 20, 2026, at $289.56, a 9.19% decline over the prior five sessions and roughly 8.82% below its June 17 level. Year to date, the stock is still up 78.81%, and one-year performance sits at 121.07%. The stock’s pullback after a parabolic run might be causing levered longs to sell into weakness regardless of the story.

Vertiv’s Business Is Booming Even as the Stock Drops

Vertiv’s most recent numbers look strong. First-quarter 2026 results, reported April 22, 2026, delivered adjusted diluted EPS of $1.17 against a $1.01 consensus on revenue of $2.649 billion, up 30.1% year over year. Adjusted operating margin expanded 430 basis points to 20.8%, and operating cash flow soared 152.82%. Management raised full-year 2026 guidance to $13.50B to $14.00B in net sales and $6.30 to $6.40 in adjusted EPS. Americas revenue was $1.814 billion at 53.1% growth, offset by EMEA down 20.3%.

The Q4 2025 backlog stood at $15.0 billion, up 109% year over year, with a book-to-bill near 2.9x. Vertiv was added to the S&P 500 in March 2026 and picked up inaugural investment-grade ratings from Moody’s (Baa3) and S&P (BBB-). CEO Giordano Albertazzi framed the setup: “As infrastructure density increases and deployment timelines compress, we’re positioned to be the partner customers need to bring their most ambitious projects to life, at scale.“

Cramer Sees the Same Forced Selling Hammering Microchip

Cramer extended the same “wait out the forced sellers” diagnosis in the segment to Microchip Technology (NASDAQ:MCHP), arguing margin unwinds were distorting prices across semis and data center infrastructure names alike.

Microchip opened July 20 at $80.96, down 8.61% on the week and 13.97% over one month, even as the operational turnaround under CEO Steve Sanghi keeps producing. Q4 fiscal 2026 revenue was $1.311 billion, up 35.1% year over year; non-GAAP EPS came in at $0.57, and June-quarter guidance calls for $1.442 billion to $1.469 billion in sales with distributor inventory now at 26 days.

What to Watch Next

Cramer’s message is simple: Vertiv’s decline may reflect forced selling rather than weakness in the underlying business. The company reports Q2 earnings next, with guidance calling for $3.25 billion to $3.45 billion in sales and adjusted EPS of $1.37 to $1.43. Investors should watch whether the selling pressure fades and whether Vertiv reports improving conditions in Europe, the Middle East, and Africa.

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