Vertiv's Data Center Growth Fuels Revenue: A Sign for More Upside?

Core Insights - Vertiv (VRT) is a leading provider of thermal and power management solutions for data centers, with increasing demand driven by the complexity of AI hardware and edge computing [1][2] - In Q2 2025, Vertiv's net sales rose 35.1% year over year to $2.64 billion, and its backlog increased by 21% to $8.5 billion [1] - Order growth for Vertiv's solutions was approximately 15% year over year and 11% sequentially in Q2 2025, reflecting customer expansion plans in AI and data centers [2] Product and Innovation - Vertiv launched Vertiv OneCore, a scalable prefabricated data center solution that integrates power, thermal, and IT infrastructure, aimed at accelerating high-density deployments [3] - Collaborations with CoreWeave and Oklo have enhanced Vertiv's technology leadership, positioning the company for long-term growth in the evolving data center market [3] Competitive Landscape - Vertiv faces stiff competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both expanding their capabilities for hyperscale and enterprise AI data center deployments [4][6] - Super Micro Computer is enhancing its position with end-to-end AI rack-scale systems, while Hewlett-Packard is expanding through HPE Cray and ProLiant servers [5] Stock Performance and Valuation - Vertiv's shares have increased by 13.6% year to date, outperforming the broader Zacks Computer & Technology sector, which rose 11.8%, while the Zacks Computers - IT Services industry declined by 15.7% [7] - Vertiv's stock is trading at a premium with a trailing 12-month Price/Book ratio of 15.77X compared to the sector's 9.75X, and it has a Value Score of F [10] Earnings Estimates - The Zacks Consensus Estimate for Q3 earnings is 99 cents per share, reflecting a 30.26% year-over-year growth, while the estimate for 2025 earnings is $3.82 per share, indicating a 34.04% increase from 2024 [12]