Key Takeaways Vertiv posts strong sales and order growth as global AI-driven data center demand accelerates. SMCI expands with liquid cooling and plug-and-play DCBBS to support large-scale AI deployments. VRT outperforms in stock gains and earnings momentum, while SMCI faces revenue and margin declines. Vertiv (VRT) and Super Micro Computer (SMCI) are major players in the data center market, particularly in the rapidly growing area of AI data center infrastructure and liquid cooling solutions. While Vertiv ...

One market professional following the stock feels that it's no longer a buy.Investor sentiment in data center infrastructure specialist Vertiv (VRT 8.19%) was affected mid-week by an analyst's recommendation downgrade. With that tailwind, Vertiv's shares were slumping by almost 15% week-to-date in mid-session action on Friday, according to data compiled by S&P Global Market Intelligence. Fairly priced now, says prognosticatorThat change in recommendation came from Wolfe Research's Nigel Coe, who, on Wednesd ...

Core Insights - Vertiv (VRT) is experiencing significant growth due to the global acceleration of data centers, driven by AI adoption and increasing demand for digital infrastructure [1][2] - The company reported a 43% organic sales growth in the Americas and a 21% year-over-year growth in APAC for Q3 2025 [1] - Vertiv's backlog increased by 12% sequentially and 30% year-over-year to $9.5 billion, supported by a book-to-bill ratio of 1.4 [2][10] Financial Performance - In the trailing 12 months, organic orders grew approximately 21% [2] - The consensus estimate for 2025 earnings is $4.11 per share, reflecting a 44.21% increase from 2024 [13] - Vertiv's shares have gained 61.3% over the past six months, outperforming the broader Zacks Computer & Technology sector, which appreciated 26.6% [8] Product and Acquisition Strategy - Vertiv's extensive product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions [3] - The recent $1.0 billion acquisition of PurgeRite enhances Vertiv's capabilities in liquid cooling and thermal management [3][10] - The acquisition combines Vertiv's thermal expertise with PurgeRite's flushing, purging, and filtration capabilities, improving system performance for AI data centers [4] Competitive Landscape - Vertiv faces increasing competition from Super Micro Computer (SMCI) and Hewlett Packard Enterprise (HPE), both expanding their data center capabilities [5][6] - Super Micro Computer is focusing on end-to-end AI rack-scale systems, while HPE is enhancing its offerings with liquid-cooled solutions [6][7] - These competitors are strengthening their positions in the hyperscale and enterprise AI data center market, posing challenges to Vertiv's role [7] Valuation Metrics - Vertiv's stock is trading at a trailing 12-month Price/Book ratio of 19.44X, compared to the sector average of 10.81X [11] - The company currently holds a Zacks Rank 1 (Strong Buy) [13]

Core Insights - Artificial intelligence (AI) remains a significant focus for investors, particularly in the data center sector, with Vertiv (VRT) identified as a top-ranked stock benefiting from this trend [1][6] Company Performance - Vertiv, rated Zacks Rank 1 (Strong Buy), specializes in services for data centers and communication networks, offering power, cooling, and IT infrastructure solutions [2] - Analysts have increased their EPS and sales expectations for Vertiv, with the current Zacks Consensus EPS estimate at $4.11, indicating a 45% year-over-year growth and a 15% increase over the past year [2] - The company reported a strong sales growth of 29% and has built a significant backlog, reflecting robust market demand and a strong competitive position [3][4] Financial Metrics - Vertiv has raised its full-year 2025 sales guidance, indicating a favorable operating environment [3] - The current PEG ratio for Vertiv is 1.2X, below the sector average of 1.4X, and the forward 12-month earnings multiple is 36.1X, significantly lower than the 2025 high of 43.9X [3] Market Context - The demand for Vertiv's products is closely tied to the AI infrastructure build, with strong quarterly results driven by increasing demand [4] - The excitement surrounding AI technology is attributed to its potential to enhance productivity and operational efficiencies for businesses in the long term [6]

Core Insights - Wolfe Research downgraded Vertiv from "Outperform" to "Peer Perform," indicating a shift in analyst sentiment and reflecting recent market activities [2][6] - Baker Avenue Asset Management LP reduced its stake in Vertiv by 11.4%, while Avion Wealth and DiNuzzo Private Wealth Inc. increased their holdings significantly, showcasing varied investor confidence [3][4][6] - Vertiv's market capitalization is approximately $70.96 billion, with a trading volume of 4,880,797 shares, highlighting ongoing investor interest despite recent fluctuations [5][6] Company Overview - Vertiv Holdings Co. specializes in providing critical digital infrastructure and continuity solutions across various industries, ensuring uninterrupted digital operations [1] - The company competes with major firms in the technology sector, striving to maintain its position in a rapidly evolving market [1] Stock Performance - As of December 9, 2025, Vertiv's stock was priced at $185.61, experiencing a decrease of 1.80%, dropping $3.41, with a trading range between $182 and $188.50 [2] - Over the past year, Vertiv's stock has fluctuated between a high of $202.45 and a low of $53.60, indicating significant market volatility [5]

BREAKING: Carvana, Comfort Systems, CRH To Join S&P 500 Today's Spotlight MarketSurge Cyber Week Sale This week, save over 80% on MarketSurge—get 2 months of unlimited access for only $59.95. Free webinar: Prepare Your 2026 Portfolio Learn how to read key market signals and position your portfolio for the upcoming year. December Webinar Sale Invest smarter and save big in 2026 with IBD Digital ($69+ off) and IBD Live ($289+ off). More News Israel's stock market has outpaced the U.S. since Oct. 7, 2023, with ...

Core Insights - The AI industry is evolving, leading to new challenges that larger cloud computing providers may not be equipped to handle, creating opportunities for specialized companies like Vertiv [3][5][19] - Vertiv is gaining recognition within the AI computing community for its ability to address unexpected challenges related to electricity consumption and data center cooling [5][6][9] Industry Overview - The electricity consumption from AI data centers is projected to increase by over 30 times from last year to 2035, emphasizing the need for cost-effective energy solutions [6] - The global data center cooling market is expected to grow at an average annual rate of 12% until 2034, reaching a value of over $200 billion [8] Company Profile: Vertiv - Vertiv has a market capitalization of less than $100 billion and is not widely recognized outside the AI computing community [4] - The company provides essential solutions for data center owners, including efficient power delivery and advanced cooling systems [5][9] - Vertiv's PowerDirect In-Rack systems achieve 97.5% efficiency, minimizing power input and heat generation [10] - The company offers technology tailored for the fluctuating power needs of AI data centers, including automatic static transfer switches and battery-based storage systems [11] - Vertiv's SmartRun infrastructure system integrates power distribution, cooling, and networking into a modular platform, allowing for easy adjustments [12] Competitive Landscape - Vertiv is not the only player in the AI cloud computing space; other companies like CoreWeave, Nebius, and Iren are also emerging [14][15] - However, Vertiv stands out due to its consistent profitability and significant revenue growth, with a 29% year-over-year increase in net revenue to nearly $2.7 billion [16][18] Growth Potential - The AI data center business is projected to grow at an average annual rate of over 28% through 2034, indicating strong demand for infrastructure solutions like those offered by Vertiv [18] - Vertiv's established profitability and growth trajectory present a favorable risk-reward scenario for investors looking to capitalize on this industry trend [19]

Core Insights - Vertiv Holdings Co has successfully completed the acquisition of Purge Rite Intermediate LLC for approximately $1.0 billion, enhancing its capabilities in specialized fluid management services for high-density computing and AI applications [1][2][3] Group 1: Acquisition Details - The acquisition of PurgeRite strengthens Vertiv's thermal management services and positions it as a leader in next-generation thermal chain services for liquid cooling systems [1][2] - PurgeRite is recognized for its expertise in mechanical flushing, purging, and filtration services, particularly for data centers and mission-critical facilities [4] Group 2: Strategic Benefits - The integration of PurgeRite's capabilities is expected to improve system performance through enhanced heat transfer and equipment efficiency, while also reducing the risk of downtime [3] - The acquisition allows Vertiv to provide end-to-end product and service support for high-density computing and AI applications, where efficient thermal management is essential [2][3] Group 3: Company Background - Vertiv is a global provider of critical digital infrastructure, operating in over 130 countries, and offers a portfolio of power, cooling, and IT infrastructure solutions [6]

Company Overview - Vertiv Holdings is a global designer and manufacturer of critical digital infrastructure technologies for communication networks and data centers, benefiting from AI and data center demand [1][6] - The company has a diverse product portfolio that includes thermal systems, liquid cooling, switchgear, busbar, and modular solutions, which are essential for power management in high-performance data centers [6] Stock Performance - Vertiv's shares have surged nearly 200% since April, breaking out to an all-time high in 2025 with increasing volume, indicating strong market performance [2][12] - The stock is part of the Zacks Computers – IT Services industry group, which ranks in the top 35% of approximately 250 Zacks Ranked Industries, suggesting potential for outperformance over the next 3 to 6 months [2][3] Earnings Trends - Vertiv has consistently beaten earnings estimates, with a recent EPS of $1.24, surpassing the Zacks Consensus Estimate of $1.00 by 24% and showing a 63% year-over-year growth [9][10] - Analysts have raised Q4 EPS estimates by 3.23% in the past 60 days, with the current consensus at $1.28 per share, reflecting nearly 30% growth year-over-year, and projected revenues of $2.86 billion, up more than 22% [11] Technical Analysis - The stock remains above its upward-sloping 50-day and 200-day moving averages, indicating a strong technical trend, with recent pullbacks presenting buying opportunities [14] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which have been positive for Vertiv, suggesting continued bullish momentum [15] Industry Context - Stocks in the IT Services industry are relatively undervalued based on traditional metrics, with projected earnings growth of 9.64%, compared to the S&P 500's 7.50% [4] - Investing in leading industry groups can enhance stock-picking success, as the top 50% of Zacks Ranked Industries outperform the bottom 50% by a factor of more than 2 to 1 [5]

Core Insights - Vertiv (VRT) shares have increased by 59.6% over the past six months, significantly outperforming the Zacks Computer and Technology sector's growth of 27.2% and the Zacks Computers - IT Services industry's decline of 9.6% [1][2][9] Company Performance - Vertiv has outperformed its closest competitors, Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), with HPE shares rising by 24.1% and SMCI shares dropping by 22.6% in the same period [2] - The company's organic orders grew approximately 21% in the trailing 12 months, with a book-to-bill ratio of 1.4 for Q3 2025, indicating strong future prospects [4] - Vertiv's backlog increased by 12% sequentially and 30% year-over-year to $9.5 billion, driven by the rapid adoption of AI and the growing need for data centers [4] Product Portfolio and Acquisitions - The outperformance of Vertiv is attributed to its extensive product portfolio, which includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions [3] - The company announced an agreement to acquire Purge Rite Intermediate for approximately $1.0 billion to enhance its liquid cooling and thermal management services [7] - Vertiv completed a $200 million acquisition of Great Lakes Data Racks & Cabinets, expanding its offerings for critical digital infrastructure [8] Market Demand and Growth - The global acceleration of AI adoption is driving significant demand for data center infrastructure, with organic sales growth of 43% in the Americas and 21% in APAC for Q3 2025 [11] - The company continues to invest in research and capacity expansion to meet the growing needs of AI infrastructure deployment [10] Financial Guidance - For Q4 2025, Vertiv expects revenues between $2.81 billion and $2.89 billion, with organic net sales growth projected at 18% to 22% [14] - For the full year 2025, revenues are expected to be between $10.16 billion and $10.24 billion, with organic net sales growth anticipated at 26% to 28% [15] Earnings Estimates - The Zacks Consensus Estimate for Q4 2025 earnings is $1.28 per share, reflecting a year-over-year increase of 29.29% [16] - The estimate for 2025 earnings is $4.11 per share, indicating a 44.21% increase from 2024 [17] Valuation - Vertiv is currently trading at a trailing 12-month Price/Book ratio of 19.53X, compared to the broader sector's 10.66X, suggesting it is overvalued [18] Conclusion - Vertiv's strong portfolio and extensive partner base are driving order growth, justifying its premium valuation and presenting a strong investment opportunity [20]