Why This AI/Data Center Stock Just Exploded This Week

Wall Street's latest obsession just went parabolic—and it's all about the AI infrastructure boom.

Data Center Domination

Forget the hype around AI applications—this stock's surge stems from the unsexy but critical backbone: data centers. As machine learning models grow hungrier for computational power, demand for specialized infrastructure has skyrocketed. The company's recent earnings blew past estimates, revealing staggering growth in high-performance computing contracts.

Market Mania or Sustainable Momentum?

While retail investors pile in chasing quick gains, institutional money's betting this is just the beginning. The stock ripped higher on triple-average volume—classic FOMO behavior. One analyst quipped, 'Traders are buying first and asking questions later—typical for a sector where most can't explain the technology but sure love the charts.'

Bottom line: When the AI tide rises, even the picks-and-shovels plays become momentum darlings—until the next 'revolution' comes along.

Oracle's big deal

The sector was buoyed this week by the news of a deal between OpenAI and, whereby the former will buy $300 billion worth of computing power from the latter over five years. The deal further strengthens the trend toward massive investment in data centers. That's great news for a company likepartner Vertiv that offers power, thermal management, and other solutions for data centers.

As readers already know, Vertiv has raised its full-year sales, earnings, and cash FLOW guidance through the year due to the strengthening environment.

It's a strong performance, and the company's orders momentum (organic orders ROSE 15% year over year in the second quarter) indicates more growth ahead. The Oracle deal creates an environment in which Vertiv can continue to win orders.

Image source: Getty Images.

Where next for Vertiv?

In addition, the company is preparing for another leg of growth by developing power infrastructure solutions for the next generation of data center technology, pioneered by Nvidia. The new 800V high voltage direct current (HVDC) data centers offer efficiency and cost advantages over existing data centers, and are set to launch in 2027.

Suppose Oracle's news is anything to go by. In that case, the massive ramp-up in AI/data center spending will carry through into the next few years, meaning that the technology Vertiv is developing now will see strong demand in the coming years.