Vertiv Holdings (VRT): The AI Stock Wall Street Can’t Stop Betting On
Wall Street's latest obsession isn't crypto—it's an AI infrastructure play quietly powering the data center boom.
The silent backbone of the AI revolution
While Nvidia hogs headlines, Vertiv's cooling systems keep those power-hungry AI servers from melting down. No liquid nitrogen, no data centers—simple as that.
When 'boring' infrastructure prints money
Turns out the real AI gold rush winners sell the picks and shovels. Vertiv's stock surge makes crypto's 2021 bull run look like amateur hour.
The cynical take
Another week, another 'essential' tech infrastructure play for hedge funds to pump before rotating out. At least this one has actual revenue—unlike most metaverse tokens.
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Vertiv: Riding the AI Wave
Vertiv impressed investors with solid Q1 earnings beat. The company’s Q1 2025 revenue grew 24%, while adjusted EPS (earnings per share) increased by about 49%. The AI infrastructure company also raised its full-year guidance, reflecting confidence in navigating macro challenges and mitigating the impact of tariffs announced by the TRUMP administration.
“Our partnership with Nvidia continues to place us at the heart of industrial-scale AI factory deployments,” said VRT CEO Giordano Albertazzi.
Recently, Vertiv further strengthened its collaboration with chip giant Nvidia (NVDA) and announced an energy-efficient 142kW cooling and power reference architecture for the latter’s GB300 NVL72 platform. Overall, VRT is confident about its growth ahead, with a 10% rise in Q1 2025 backlog to $7.9 billion compared to the end of 2024.
Analysts Raise Price Target for VRT Stock on AI Demand
Recently, Bank of America analyst Andrew Obin reiterated a Buy rating on Vertiv stock and increased the price target to $140 (17.8% upside potential) from $135. The 5-star analyst emphasized that the rapid advancement of AI is transforming the data center infrastructure landscape, driving robust demand for power, cooling, and advanced hardware. BofA expects data center spending to grow at a 13% CAGR (compound annual growth rate) from 2024 to 2028, reaching $532 billion. In fact, he expects infrastructure-related spending to climb at an even faster 16% CAGR.
Notably, Obin believes that Vertiv, Eaton (ETN), and Johnson Controls (JCI) are well-positioned to leverage the shift toward high-density racks and advanced cooling solutions like direct-to-chip liquid cooling. He also named GE Vernova (GEV) as a top pick in the power generation space, citing its potential to meet rising demand. With only 5% of existing data centers equipped to handle AI workloads, Obin expects a massive upgrade cycle ahead. Also, with AI-driven demand showing no signs of slowing, Obin is upbeat about these stocks.
Meanwhile, Citi analyst Andrew Kaplowitz increased the price target for VRT stock to $130 (9.4% upside potential) from $98 and reaffirmed a Buy rating. Following a meeting with the management, the 5-star analyst stated that he is confident that Vertiv remains well-positioned for huge industrial market outgrowth, thanks to durable AI/data center-related growth (Citi forecasts overall global data center IT load growth at 14% CAGR through 2030) and its focus on innovation. Kaplowitz also highlighted VRT’s efforts to mitigate tariff headwinds over time. Citing the possibility for margin expansion, strong underlying fundamentals, and increased confidence in improving performance, Kaplowitz increased the EV/EBITDA target multiple for VRT stock to 21x from 16x.
Is VRT a Good Stock to Buy?
Overall, Vertiv Holdings stock scores a Strong Buy consensus rating based on 12 Buys and two Holds. The average VRT stock price target of $116.93 indicates a possible downside of 1.6% from current levels, following the strong rally over the past year.
