Core Insights - Vertiv (VRT) and Generac Holdings (GNRC) are significant players in the data center infrastructure market, providing essential solutions for data centers and industrial environments [2] - The data center infrastructure management market is projected to grow from approximately $3.06 billion in 2024, with a CAGR of 17.3% from 2025 to 2030, presenting substantial growth opportunities for both companies [3] Vertiv (VRT) Overview - Vertiv specializes in thermal and power management solutions for data centers, which are increasingly demanding due to the complexity of AI hardware and edge computing [4] - The company reported a 24% year-over-year increase in net sales for Q1 2025, reaching $2.036 billion, with organic orders up about 20% compared to the previous year [5] - Strong capital expenditure plans from hyperscalers for data center expansion are favorable for Vertiv, supported by a diverse partner ecosystem including major tech companies [6] Generac Holdings (GNRC) Overview - Generac is expanding its portfolio with new high-capacity generators tailored for the data center market, which is a key growth driver [7] - In April 2025, Generac launched a new range of generators (2.25 MW to 3.25 MW) designed to meet the power needs of data centers, featuring advanced technology for reliable energy solutions [8] - The rise of AI applications is driving demand for energy-intensive data centers, which may strain existing power grids, creating opportunities for Generac [9] Stock Performance and Valuation - Year-to-date, Vertiv's shares have increased by 12.1%, while Generac's shares have decreased by 5.3% due to macroeconomic uncertainties and cost pressures [11] - Vertiv's shares are currently trading at a forward Price/Sales ratio of 4.73X, compared to Generac's 1.90X, indicating a higher valuation for Vertiv [14] Earnings Estimates - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $3.56 per share, reflecting a 24.91% year-over-year increase [17] - Generac's 2025 earnings estimate is $7.42 per share, showing a modest 2.06% year-over-year increase [17] Conclusion - Both Vertiv and Generac are positioned to benefit from the growing data center market, but Vertiv is viewed as the stronger investment option due to its AI-driven growth and strategic partnerships [18] - Generac faces challenges from cost pressures and macroeconomic uncertainties, impacting its market position [19]