1 Data Center Stock That Billionaire Philippe Laffont Is Buying Now

Core Insights - The company is significantly investing in AI, highlighted by its $1 billion acquisition of PurgeRite, enhancing its liquid-cooling capabilities essential for AI server farms [1] - Vertiv's partnership with Nvidia aims to co-design an 800-volt DC power and cooling system for next-generation AI chips, positioning the company at the forefront of the AI data center market [1][4] - The company has reported strong financial performance, with Q4 2025 net sales reaching $2.88 billion, a 23% increase from Q4 2024, and organic orders up 252% year-over-year [10] Company Overview - Vertiv is a global leader in critical digital infrastructure, providing hardware for data centers, telecom networks, and edge computing facilities [2] - The company combines essential hardware with analytics and lifecycle services, which has attracted significant interest from growth investors [4][5] Financial Performance - Vertiv's Q4 2025 results showed a 37% increase in adjusted EPS to $1.36, surpassing consensus estimates [12] - Operating cash flow in Q4 was $1.005 billion, more than double the previous year, with adjusted free cash flow at $910 million [13] - The company ended the quarter with $2.6 billion in liquidity and a net debt of only 0.5× EBITDA [13] Growth Prospects - Vertiv expects net sales for 2026 to be between $13.25 billion and $13.75 billion, indicating a 27% to 29% increase, with adjusted EPS projected at approximately $5.97 to $6.07 [14] - Analysts project a 43% EPS growth in 2026, with a PEG ratio near 1.0, suggesting that the stock's premium aligns with its growth outlook [7] Market Sentiment - Billionaire investor Philippe Laffont's Coatue Management disclosed a new stake in Vertiv, indicating strong interest from prominent growth funds [4][8] - Analysts have raised price targets for Vertiv following strong quarterly results, with Goldman Sachs increasing its target to $277 and Morgan Stanley to $285 [15][16]