Can Vertiv's International Expansion Drive More Upside in the Stock?

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]