Key Points Vertiv's partnership with Nvidia makes it one of the most compelling liquid cooling solution providers. The AI boom is still in its early stages, and tech giants need Vertiv's services to ensure AI chips do not overheat. Vertiv is expanding its EMEA market share, which can translate to higher overall revenue growth. 10 stocks we like better than Vertiv › Vertiv's (NYSE: VRT) liquid-cooling solutions are a vital backbone of AI infrastructure. Without the company's cooling technology, AI ...

Core Insights - The tech sector is the primary beneficiary of the mainstream adoption of artificial intelligence (AI), with nine of the world's ten most valuable public companies being tech firms [1] - Non-tech sectors, particularly energy and industrials, are also experiencing increased demand due to AI, highlighting opportunities for companies like Vertiv [2] Company Overview - Vertiv specializes in cooling systems and power management tools essential for data centers, preventing overheating and equipment failure [5][4] - The company has a significant market presence, with a market cap of $70 billion and a stock price of $182.49 [6][7] Financial Performance - Vertiv's stock increased by 42% in 2025, benefiting from rising data center spending by major tech companies [7] - In Q3 2025, Vertiv reported $2.67 billion in revenue, a 29% year-over-year increase, with operating income growing 39% to $517 million, indicating improved efficiency [8] - The company's backlog at the end of Q3 was $9.5 billion, suggesting strong future demand and the need for new manufacturing investments [9] Strategic Partnerships - Vertiv has established a partnership with Nvidia, collaborating on cooling systems for new chip designs, which enhances its market position [8]

Group 1 - Vertiv Holdings (VRT), a partner of Nvidia (NVDA) in the artificial intelligence data center infrastructure sector, approached a buy point with its stock gaining to 181.60, briefly surpassing a double bottom buy point of 189.66 intraday [4] - The AI data center play has seen an increase of over 12% recently, indicating strong market interest and performance [4] - Google stock was upgraded by Raymond James due to optimistic growth estimates in AI-driven cloud computing, which are significantly above Wall Street consensus [5]

Company Overview - Vertiv Holdings Co (NYSE: VRT) designs, manufactures, and manages power and cooling systems specifically for data centers and digital networks, providing essential services to ensure these systems operate efficiently [2]. Market Position - The company is recognized for its Liebert cooling systems, which are considered top-tier in the industry, with a strong historical reputation dating back to the 1980s [2]. - Despite current market sentiment being unfavorable towards data center stocks, Vertiv is expected to remain a necessary player in the industry due to its essential products [1]. Financial Insights - Vertiv's order book is reported to be robust, indicating strong demand for its products and services [2]. - The stock experienced a decline attributed to market reactions related to CyrusOne, but the underlying fundamentals suggest it remains a viable investment opportunity [2]. Investment Sentiment - There is a belief that while Vertiv has potential as an investment, other AI stocks may present greater upside potential with less risk [3].

Core Insights - Vertiv has launched Vertiv™ Next Predict, an AI-powered managed service aimed at transforming data center maintenance by utilizing advanced machine learning algorithms to anticipate issues before they occur [1][2] Group 1: Service Overview - Vertiv™ Next Predict moves beyond traditional maintenance models by industrializing operations and analyzing asset behavior to prevent risks [1] - The service integrates predictive intelligence across power, cooling, and IT systems, creating a unified foundation for AI-driven data centers [1][2] Group 2: Technology and Functionality - The service employs AI-based anomaly detection to continuously monitor equipment conditions and identify deviations early, allowing for proactive risk mitigation [4] - A predictive algorithm assesses potential operational impacts, prioritizing responses based on identified risks [4] - Root cause analysis is conducted to isolate contributing factors, enabling efficient and targeted resolutions [4] Group 3: Scalability and Future Growth - Vertiv™ Next Predict is designed for versatility and scalability, supporting a wide range of power and cooling platforms, including battery energy storage solutions and liquid cooling components [5] - The service is built to integrate seamlessly with future data center technologies, ensuring it evolves alongside customer infrastructure needs [5] Group 4: Company Background - Vertiv is a global leader in critical digital infrastructure, providing hardware, software, analytics, and ongoing services to ensure optimal performance of vital applications [8] - The company operates in over 130 countries, addressing challenges in data centers, communication networks, and commercial facilities [8]

Company Overview - Vertiv Holdings has a history dating back to 1946, initially developing air-cooling systems for data rooms and later expanding into computer room air conditioning units in 1965, which allowed for precise temperature and humidity control [8] - The company has grown its data center portfolio through internal product development and acquisitions, offering thermal and power management products globally [8] Current Market Status - Vertiv Holdings is currently trading at $176.77, with a volume of 3,270,867 shares, reflecting a 0.91% increase [10] - The stock is approaching overbought territory according to RSI readings, and an earnings release is anticipated in 21 days [10] Analyst Insights - Two industry analysts have provided insights, suggesting an average target price of $212.5 for Vertiv Holdings [9] - JP Morgan maintains an Overweight rating with a target price of $225, while Barclays has upgraded its rating to Overweight with a revised target of $200 [9][11] Options Trading Activity - Recent options trading for Vertiv Holdings shows a split sentiment among large investors, with 40% bullish and 42% bearish positions [2] - A total of 40 uncommon options trades were identified, with 8 puts totaling $1,089,309 and 32 calls totaling $2,534,170 [2] - The significant options activity indicates a price target range from $55.0 to $280.0 over the past quarter [3][4]

Core Insights - Vertiv (VRT) is experiencing strong international demand for data center infrastructure, driven by the global acceleration of digital transformation and AI adoption [1] Financial Performance - The company reported a robust third-quarter 2025, with organic sales growth of 28% year over year, driven by a 43% increase in the Americas and 21% growth in the APAC region [2] - Vertiv's backlog has grown 30% year over year to $9.5 billion, providing strong visibility into 2026 [2] - For fourth-quarter 2025, revenues are expected to be between $2.81 billion and $2.89 billion, with organic net sales expected to increase in the 18% to 22% range [5] Product Development - Vertiv recently announced new configurations of its Vertiv MegaMod HDX prefabricated power and hybrid cooling solutions, designed for high-density AI and HPC deployments [3] - The modular systems integrate direct-to-chip liquid cooling, redundant power architecture, and factory-tested components, enhancing deployment speed and scalability [4] Competitive Landscape - Vertiv faces increasing competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both expanding their capabilities in the AI infrastructure market [6] - Super Micro Computer is scaling production to 6,000 racks per month, including 3,000 DLC racks, to meet regional AI requirements [7] - Hewlett-Packard Enterprise expanded its AI infrastructure portfolio and partnered with NVIDIA to launch the AI Factory Lab in Grenoble, France [8] Stock Performance and Valuation - VRT's shares have gained 39.9% in the past six months, outperforming the broader Zacks Computer & Technology sector, which appreciated 16.8% [9] - Vertiv's stock is trading at a premium, with a trailing 12-month Price/Book of 19.09X compared to the sector's 10.74X [13] - The Zacks Consensus Estimate for 2025 earnings is pegged at $4.12 per share, indicating a 44.56% increase from the reported figure of 2024 [16]

Group 1: Investment Recommendations - Bank of America has identified several stocks well-positioned for the upcoming earnings season, including Amazon.com Inc., Brookdale Senior Living Inc., Corning Inc., Vertiv Holdings Co., and Carvana Co. [1] - Amazon is highlighted as a compelling investment due to its potential for valuation improvement, particularly if AWS revenue growth accelerates and AI capabilities are strengthened [2][3] - Brookdale Senior Living has been upgraded to a buy rating, benefiting from an aging population, with shares rising nearly 13% this year [4] - Carvana is recognized for its growth potential, driven by innovation and new initiatives, with its stock up 6% this year [5] - Corning has been rated a buy, supported by a favorable balance of glass supply and demand, and expected growth from carrier spending and Gen AI in the Optical market [6] - Vertiv is expected to benefit from margin recovery and improved free cash flow, with increased demand for its thermal management products due to AI adoption in data centers [7] Group 2: Market Trends and Earnings Outlook - The tech industry is anticipated to have a strong Q4 earnings season, with predictions of impressive earnings from tech giants like Amazon, Microsoft, and Alphabet, driven by demand for AI enterprise services [8] - The upgrade of Brookdale Senior Living reflects strong growth potential in the senior housing sector, despite challenges in the healthcare landscape [9] - Corning's strong Q3 results, with core sales up 14% year over year and enterprise sales in Optical Communications surging 58%, highlight ongoing shifts in digital infrastructure and materials science sectors [10]

Core Viewpoint - Vertiv Holdings Inc. has shown strong stock performance with a 7.96% increase over the past month and a 20.55% increase over the past year, leading to optimism among long-term shareholders, although concerns about potential overvaluation based on the price-to-earnings (P/E) ratio are present [1]. Group 1: Stock Performance - The current stock price of Vertiv Holdings Inc. is $175.31, reflecting a 1.61% increase in the current session [1]. - Over the past month, the stock has increased by 7.96% [1]. - In the past year, the stock has appreciated by 20.55% [1]. Group 2: P/E Ratio Analysis - The P/E ratio of Vertiv Holdings is 65.11, which is higher than the aggregate P/E ratio of 40.93 for the Electrical Equipment industry [6]. - A higher P/E ratio may suggest that shareholders expect better future performance from Vertiv Holdings compared to its industry peers [6]. - The P/E ratio is a useful metric for assessing market performance but should not be used in isolation, as it has limitations and should be considered alongside other financial metrics and qualitative factors [8].

Core Insights - Investors are encouraged to consider purchasing leading AI stocks following Taiwan Semiconductor's strong fourth-quarter results, which were significantly enhanced by AI demand [1][2] - The semiconductor industry, particularly companies like Taiwan Semiconductor, is expected to continue thriving in the AI sector, with projections indicating robust growth through 2026 [1][8] Semiconductor Industry - Taiwan Semiconductor (TSM) raised its capital expenditure guidance for 2026 to between $52 billion and $56 billion, surpassing the previous year's guidance of $40.9 billion [8] - TSMC anticipates a revenue increase of 30% in 2026, with a compound annual growth rate (CAGR) of approximately 25% from 2024 to 2029 [8] AI Stocks - The tech sector is projected to experience a 20% earnings growth in 2026, contributing to an overall S&P 500 earnings growth of 12.8% [4][5] - Vertiv Holdings Co (VRT) is highlighted as a key AI infrastructure stock, expected to grow its revenue by 28% in 2025 and 22% in 2026, reaching $12.43 billion [13] - Advanced Micro Devices (AMD) is positioned as a strong competitor in the AI chip market, with a projected revenue growth of 32% in 2025 and 28% in 2026, aiming for $43.43 billion [20] Earnings Outlook - The overall earnings outlook for the tech sector has improved significantly since early July, with all 16 Zacks sectors expected to show positive earnings growth for the first time since 2018 [5] - AMD's earnings per share (EPS) is expected to increase by 20% in FY25 and 58% in FY26, reaching $6.26 per share [21]