Core Insights - Vertiv Holdings (VRT) is identified as a compelling buy despite slightly elevated valuations, primarily due to its leadership position in liquid cooling within the competitive AI infrastructure ecosystem [1] Company Analysis - Vertiv's liquid cooling technology is positioned as critical in the AI ecosystem, which is characterized by high competition [1] Market Trends - The article emphasizes the importance of liquid cooling solutions in the context of growing AI infrastructure demands, suggesting a favorable market trend for companies like Vertiv [1]

Core Insights - Vertiv Holdings (VRT) is identified as a compelling buy despite slightly elevated valuations, primarily due to its leadership position in liquid cooling within the competitive AI infrastructure ecosystem [1]. Company Analysis - Vertiv's liquid cooling technology is positioned as critical in the AI ecosystem, which is characterized by high competition [1]. Market Trends - The article emphasizes the importance of liquid cooling solutions in the context of growing AI infrastructure demands, suggesting a favorable market trend for companies like Vertiv [1].

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Core Insights - Four companies identified by KBW analyst Shreyank Gandhi are among the largest not included in the index [1] Group 1 - The companies were selected from a list compiled by the analyst [1]

Core Insights - Vertiv (VRT) experienced challenges in early 2025 due to canceled data center contracts with Microsoft [1] Company Analysis - The company has been under observation for nearly a year, indicating a sustained interest in its performance and market position [1]

Core Insights - Vertiv (VRT) is experiencing significant growth due to the rising demand for AI infrastructure, particularly in the Americas and APAC regions, with organic sales growth of 43% and 21% respectively in Q3 2025 [1][2] Group 1: Sales and Orders - The company reported a robust order pipeline with organic orders increasing by approximately 21% over the trailing 12 months, and a book-to-bill ratio of 1.4 for Q3 2025, indicating strong future prospects [2][10] - Vertiv's backlog reached $9.5 billion, growing 12% sequentially and 30% year over year, driven by the demand for AI and data center solutions [2][10] Group 2: Investment and Capacity Expansion - The company is actively investing in research and capacity expansion to meet the growing needs of AI infrastructure, particularly in advanced power and cooling systems [3][10] - Vertiv has developed a high-density reference design for NVIDIA's GB300 NVL72 platform, capable of supporting up to 142kW per rack, which is essential for high-density computing environments [4][10] Group 3: 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][6] - Super Micro Computer reported that over 75% of its revenues in Q1 fiscal 2026 came from AI-focused systems, with significant back orders indicating strong market positioning [6] - HPE achieved record AI systems revenues of $1.6 billion in Q3 2025, along with a record AI backlog of $3.7 billion, showcasing its competitive strength in the AI infrastructure sector [7] Group 4: Stock Performance and Valuation - Vertiv's stock has appreciated by 49.3% year to date, outperforming the broader Zacks Computer & Technology sector, which increased by 25% [8][10] - The company's trailing 12-month Price/Book ratio stands at 18.48X, significantly higher than the sector average of 10.43X, indicating a premium valuation [11] - The consensus estimate for Vertiv's 2025 earnings is $4.11 per share, reflecting a 44.21% increase from 2024 [13]

Core Insights - Vertiv Holdings (VRT) stock surged 78% over nine months, driven by rising revenues and margins, despite a decrease in its P/E multiple [2][3] Financial Performance - Revenue increased by 21%, while margins rose by 72%, despite a 13% decrease in the P/E multiple [3] - Q1 2025 adjusted EPS reached $0.64, exceeding forecasts, with revenue also surpassing expectations, leading to a 10.64% stock increase [9] - Q3 2025 EPS was $1.24, exceeding estimates, with a 29% rise in revenue and a 60% surge in organic orders [9] - Following strong Q3 results, Vertiv raised its full-year 2025 financial outlook [9] Dividend and Partnerships - The annual dividend was increased by 67% to $0.25 per share, reflecting robust financial performance [9] - Vertiv formed a partnership with Caterpillar to develop energy optimization solutions for AI data centers [9]

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Core Insights - Vertiv (VRT) is experiencing significant growth due to the accelerating adoption of artificial intelligence (AI) and the increasing global demand for data centers [1][2][10] Financial Performance - In Q3 2025, Vertiv's net sales rose by 29% year over year to $2.68 billion, driven by the rapid expansion of AI infrastructure and the need for enhanced data storage and processing capabilities [1][10] - The company reported a robust order pipeline with organic orders growing approximately 21% over the trailing 12 months, and a book-to-bill ratio of 1.4 times for Q3 2025, indicating strong future prospects [3] - The backlog increased by 12% sequentially and 30% year over year, reaching $9.5 billion, primarily due to the rapid adoption of AI and the demand for data centers [3] Market Trends - The global acceleration of AI adoption is significantly driving demand for data center infrastructure, with the Americas experiencing a 43% organic sales growth and APAC growing by 21% in Q3 2025 [2] - The focus on energy efficiency is becoming increasingly important in the data center industry, influencing infrastructure development [6] Strategic Moves - Vertiv is expanding its product portfolio through acquisitions, recently announcing an agreement to acquire Purge Rite Intermediate for approximately $1.0 billion in cash, with potential additional earn-outs of up to $250 million, aimed at enhancing its liquid-cooling and thermal-management services [4][10] Competitive Landscape - Vertiv faces stiff competition from companies like Super Micro Computer (SMCI) and Applied Digital (APLD), which are also expanding their capabilities to serve hyperscale and enterprise AI data center deployments [5] - Super Micro Computer is leveraging its innovative Data Center Building Block Solution to provide comprehensive server and data center solutions, which may support sustainable growth in the market [7] Stock Performance and Valuation - Vertiv's shares have gained 46.7% year to date, outperforming the broader Zacks Computer & Technology sector, which appreciated by 23.6%, while the Zacks Computers - IT Services industry declined by 17.3% [8] - The stock is trading at a premium, with a trailing 12-month Price/Book ratio of 18.16X compared to the sector's 10.31X, indicating a higher valuation [11] - The consensus estimate for 2025 earnings is $4.11 per share, reflecting a 44.21% increase from the reported figure of 2024, with a Zacks Rank of 1 (Strong Buy) [13]

Core Insights - The article discusses a new strategic agreement between Vertiv and Caterpillar aimed at enhancing data center efficiency and resilience through integrated energy solutions [1] Company Collaboration - Vertiv, a leader in critical digital infrastructure, and Caterpillar, a leader in power systems, will collaborate on advanced energy optimization solutions specifically for data centers [1] Industry Impact - The partnership is expected to improve deployment timelines and overall operational efficiency within the data center industry, addressing the growing demand for reliable energy solutions [1]