Get Ready for This AI Data Center Stock to Play Catch Up and Surge in 2026.

Group 1: Market Overview - Global markets are buoyed by enthusiasm for artificial intelligence (AI) and the expansion of data center infrastructure, with data center M&A projected to reach approximately $61 billion through 2025, surpassing the previous year's record [1] - Demand for physical infrastructure continues to drive investment themes, despite some concerns about potential overvaluation in parts of the AI sector [1] Group 2: Company Positioning - Vertiv (VRT) is well-positioned to benefit from the ongoing data center investment trend, with Barclays upgrading the stock to "Overweight" due to recent price weakness presenting an attractive entry point [2] - Approximately 80% of Vertiv's sales are derived from data centers, and the company is expected to exceed Street earnings estimates for 2026 [2][3] Group 3: Financial Performance - Vertiv's stock experienced significant growth in 2025, more than doubling early in the year due to increased data center demand and expanded business with hyperscale AI customers, reaching a record price above $202 before a year-end pullback to around $165 to $170, approximately 15% off its peak [5] - The stock trades at a premium, with a forward price/book ratio of 17.19 compared to the sector median of 3.34, indicating a higher valuation, but analysts suggest this reflects anticipated revenue and earnings growth of about 25% to 30% [6]