With a fresh round of quarterly results on deck, investors are focusing on three companies that sit at the center of aviation and data center buildouts. Industry watchers highlighted Howmet Aerospace, Arista Networks, and Vertiv Holdings as key reports to watch in the week ahead, citing signals these updates could send on aircraft production, cloud spending, and artificial intelligence infrastructure demand.
The attention comes as markets look for clear guidance on supply chains, pricing power, and orders through the first half of the year. The companies span different sectors but share a link to large capital spending cycles. Their results often shape expectations for suppliers and customers across tech and industrials.
Why These Three Matter Now
Howmet is a major supplier of engineered parts for commercial and defense aircraft, including fasteners and turbine components. Its fortunes track aircraft build rates at Boeing and Airbus, as well as engine makers. After a long travel recovery, the next leg depends on stable output, labor availability, and quality fixes in the aerospace supply chain.
Arista sells high-speed networking gear to cloud giants and large enterprises. Its switches help move traffic inside massive data centers. Over the last two years, spending on networking rose with the push to support AI training and inference. Any shift in orders from top cloud customers can swing growth rates and investor sentiment.
Vertiv provides power, cooling, and related systems that keep data centers running. The surge in AI servers, which draw more power and generate more heat, has lifted demand for power distribution units, thermal systems, and services. Backlog trends and delivery timelines are closely watched as utilities and data center operators try to keep up.
Voices Framing the Setup
“IBD’s Alexis Garcia and Ed Carson preview key upcoming earnings reports from Howmet Aerospace, Arista Networks and Vertiv Holdings.”
The preview signals heightened interest in how these reports may shape market leadership. For investors who track growth and cyclical themes, the trio offers a read on two powerful forces: a still-recovering aerospace cycle and an aggressive data center buildout.
Howmet: Reading the Aerospace Supply Chain
Howmet’s update will likely focus on commercial aero volume, pricing, and margin traction from higher mix parts. Boeing’s production oversight and Airbus’s delivery targets remain swing factors. Engine shop visits and aftermarket activity also matter for demand visibility.
Investors will listen for comments on raw materials, including titanium sourcing, and any shifts in inventory plans by major customers. Stable free cash flow and disciplined capital returns could help buffer near-term production noise.
Arista: Cloud Spending and AI Networking
For Arista, the key questions center on orders from large cloud service providers and the pace of 400G and 800G deployments. Many expect continued strength as AI clusters expand, but comparisons are getting tougher after strong growth in recent periods.
Margins remain a focus as supply costs normalize and product mix evolves. Color on campus and enterprise demand could show whether spending is broadening outside of AI-heavy projects.
Vertiv: Powering the AI Data Center
Vertiv’s business is tied to rising rack densities and grid constraints that make cooling and power delivery more complex. Investors will look for updates on backlog conversion, pricing, and lead times. Any commentary on liquid cooling adoption would offer clues on how fast next-generation thermal solutions are scaling.
The company’s order trends can serve as a proxy for near-term construction activity and long-term AI investment plans by colocation and cloud providers.
What to Watch in the Numbers
- Revenue growth compared with last year, especially for AI and cloud exposure at Arista and Vertiv.
- Margins and pricing power across products as supply chains normalize.
- Backlog and book-to-bill updates, signaling demand durability.
- Guidance for the next quarter and full year, including capital spending assumptions by key customers.
- Cash flow and any changes to buybacks or dividends.
Market Backdrop and Potential Outcomes
Stocks tied to AI infrastructure have rallied on strong demand signals. That raises the bar for Arista and Vertiv to meet expectations. Any sign of order pauses or shipment delays could spark volatility. For Howmet, steady aircraft output and aftermarket strength would support the aerospace upcycle, while any new production hiccups could weigh on sentiment.
Analysts also watch second-half visibility. Clear guidance on orders and capacity can smooth concerns over supply constraints or timing of large data center projects.
Taken together, these reports will help define where capital is flowing in 2024: into the networks and power systems that fuel AI, and into the parts that keep the global fleet in the air. Strong bookings and disciplined execution would reinforce the current investment trends. Softer outlooks would raise questions about timing rather than long-term demand. Investors should watch guidance, backlog health, and customer concentration for clues on the next move.
