Vertiv Holdings Co (NYSE:VRT) is one of the Hot AI Stocks on Wall Street’s Radar. On December 9, Wolfe Research downgraded the stock from Outperform to “Peerperform” without a price target. After an extended period of outperformance, the firm sees a balanced risk-reward profile for the stock. Wolfe Research noted that this is the first time that they are not recommending the stock since December 2022. Analysts noted that after a period of outperformance, “the stock now looks balanced in our bull vs. bear ...

Core Viewpoint - Vertiv Holdings Co (NYSE:VRT) is gaining attention as a key player in the AI data center sector, with positive outlooks from TD Cowen regarding its stock performance driven by increasing demand for data centers in the US [1][2][3] Group 1: Stock Performance and Ratings - TD Cowen raised its price target for Vertiv to $211.00 from $210.00 while maintaining a "Buy" rating, reflecting optimism about the company's growth prospects [1] - Vertiv has been included in TD Cowen's "Best Ideas 2026," indicating strong expectations for order growth and margin improvements as AI data center demand rises [2] Group 2: Market Demand and Trends - Recent checks show that US data center demand is accelerating, with an estimated 11GW leasing pipeline and solid leasing activity observed in the current quarter [2] - The company is positioned to benefit from approximately 11.3GW of year-to-date data center leasing tracked through channel checks up to the third quarter of 2025 [3] Group 3: Margin and Cost Dynamics - Equipment checks indicate favorable price and cost dynamics that are expected to support margins in the second half of 2026 and beyond [3] - Vertiv is viewed as a strategic investment in the AI data center theme, likened to a "picks and shovels" approach, capitalizing on the demand from hyperscale data centers [3]

Core Insights - Vertiv Holdings Co (NYSE:VRT) is recognized as a significant AI stock on Wall Street, with Evercore ISI raising its price target to $210 from $200 while maintaining an Outperform rating following strong quarterly results [1][4] Financial Performance - The company reported third-quarter revenue of $2.67 billion and earnings per share (EPS) of $1.24, surpassing analyst expectations of $2.58 billion and $0.98 respectively [1] - Vertiv experienced an impressive organic revenue growth of approximately 28% year-over-year, driven by North America (+43%) and APAC (+21%), while EMEA showed a decline of 4% [2] Future Guidance - For the December quarter, the company guided for approximately 20% organic growth to $2.85 billion and EPS of $1.26, with an EBIT margin of 22.4% [3][4] - The guidance reflects a softer EBIT margin due to higher tariff costs and increased fixed costs, as capital expenditure additions have been pulled in from early 2026 to December 2025 [3][4] Order and Backlog Insights - Orders surged by 60% in Q3, driven by strong AI data center engagements totaling around $3.75 billion, resulting in a book-to-bill ratio of 1.4x and a backlog of $9.5 billion [2][4] - The backlog consists of firm purchase orders, indicating potential upside from recent large engagements in the AI sector [4]