Vertiv(US:VRT) ZACKS·2025-12-24 18:36Core Insights - Vertiv (VRT) is experiencing significant growth due to the accelerating adoption of AI, particularly in the data center market, with organic sales growth of 43% in the Americas and 21% in APAC for Q3 2025 [1][10] Group 1: Company Performance - VRT's AI-powered product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, leading to a 21% growth in organic orders over the past 12 months and a book-to-bill ratio of 1.4 for Q3 2025 [2] - The backlog increased by 12% sequentially and 30% year over year, reaching $9.5 billion, driven by the rapid adoption of AI and the need for data centers [2][10] - For Q4 2025, VRT anticipates revenues between $2.81 billion and $2.89 billion, with organic net sales expected to grow by 18% to 22% [4] Group 2: Competitive Landscape - Vertiv faces increasing competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both of which are expanding their capabilities in the AI infrastructure market [5] - Super Micro Computer has enhanced its AI portfolio with new liquid-cooled systems that maximize AI performance and scalability [6] - HPE has expanded its AI-native networking portfolio to optimize AI workloads and simplify IT operations [7] Group 3: Stock Performance and Valuation - VRT's shares have increased by 35.9% over the past six months, outperforming the broader Zacks Computer & Technology sector, which rose by 22%, while the Zacks Computers - IT Services industry declined by 8.1% [8] - The trailing 12-month Price/Book ratio for VRT is 18.12, compared to the sector's 10.65, indicating a premium valuation [12] - The Zacks Consensus Estimate for 2025 earnings is $4.11 per share, reflecting a 44.21% increase from 2024 [15]