Zacks.com users have recently been watching Vertiv (VRT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The global competition to develop large AI models has been characterized by discussions concerning high-performance accelerated computing chips and advancements in software. However, this digital transformation might be encountering a surprisingly traditional, analog issue: Power and Heat.
On Dec. 12, Vertiv Holdings Co. NYSE: VRT closed nearly 10% lower at $161.14—a sharp correction that startled investors. However, the decline was not driven by a deterioration in Vertiv's business fundamentals, but rather by market reactions to external factors—most notably, Oracle's NYSE: ORCL most recent earnings report and an analyst downgrade from Wolfe Research.
Vertiv gains momentum as AI-driven data center demand boosts orders and backlog, widening its edge over Super Micro Computer.
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Recently, Zacks.com users have been paying close attention to Vertiv (VRT). This makes it worthwhile to examine what the stock has in store.
Vertiv stock surges as booming AI-driven data center demand lifts sales, orders, and backlog, with a big liquid-cooling acquisition bolstering its momentum.
Vertiv has become a massive winner from the data center buildout, with its quarterly results regularly flagging big demand and a growing backlog.
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This AI infrastructure provider boasts a rich partner base that includes the likes of Nvidia, Ballard Power Systems, Compass Datacenters, and Intel.
VRT's six-month surge, booming AI-driven orders, and rapid portfolio expansion set the stage for a strong 2025 outlook.
Vertiv Holdings (VRT) is a compelling buy, leveraging its leadership in liquid cooling and power solutions for data centers amid AI-driven secular growth. VRT's moat is reinforced by high integration costs, sticky contracts, and robust order book visibility, with a $9.5B backlog nearly matching annual revenue. Operating margins are expanding, with a 25% target by 2029, and VRT's strong balance sheet supports both organic growth and strategic acquisitions.