Jefferies Reiterates Buy on Vertiv Holdings Co (VRT), $145 Target Amid AI Data Center Demand

Vertiv Holdings Co (VRT) has received a reiterated 'Buy' rating from Jefferies, with a price target of $145, as the global provider of critical digital infrastructure and continuity solutions continues to capitalize on the growing demand for AI data center solutions. Vertiv's strategic partnerships with leading AI chipmakers, such as NVIDIA and Intel, have positioned the company at the forefront of AI infrastructure solutions, addressing the unique power and cooling demands of AI data centers.

Vertiv's AI-ready infrastructure portfolio addresses the unique power and cooling demands of AI data centers by offering cutting-edge solutions engineered with industry leaders in the AI industry. These solutions are designed to power and cool even the highest density workloads in most challenging deployments. Vertiv's AI-ready infrastructure portfolio includes power solutions, such as uninterruptible power supply (UPS) with lithium-ion batteries, busbar, switchgear, and battery energy storage systems (BESS) to support microgrid applications. Additionally, Vertiv provides a range of cooling solutions for AI and HPC, including rear door heat exchangers, direct-to-chip liquid cooling and coolant distribution units (CDUs), high-capacity free-cooling chillers, and large capacity chilled water-based prefabricated modular data center solutions.



Vertiv's strategic partnerships with NVIDIA and Intel are crucial for mitigating risks and ensuring the company's offerings remain competitive and relevant in the long term. These partnerships enable Vertiv to leverage the expertise and cutting-edge technologies of two leading AI chipmakers, allowing the company to stay at the forefront of AI infrastructure solutions. Vertiv and NVIDIA collaborated to develop a unique AI cooling solution for the COOLERCHIPS program, demonstrating Vertiv's commitment to addressing the specific cooling challenges faced by AI workloads. Additionally, Vertiv is collaborating with Intel to provide liquid- and air-cooled solutions for the revolutionary Gaudi3 AI accelerator, ensuring that Vertiv's offerings can support the latest AI technologies.

Vertiv's focus on sustainability and energy efficiency, as demonstrated by its AI Hub and cooling retrofit savings calculator, positions the company to capitalize on the increasing demand for eco-friendly data center solutions. Vertiv's AI Hub (Vertiv.com/AI) is a comprehensive resource that provides expert information, reference designs, and tools to successfully plan AI-ready infrastructure. This hub showcases Vertiv's commitment to helping customers navigate the complexities of AI deployment while minimizing environmental impact. By offering guidance on energy-efficient power and cooling solutions, Vertiv can help data centers reduce their carbon footprint and lower operating costs. Vertiv's cooling retrofit savings calculator helps customers estimate the potential energy savings and return on investment (ROI) when upgrading to more efficient cooling systems, enabling data centers to make informed decisions about retrofitting their infrastructure and ultimately leading to reduced energy consumption and lower greenhouse gas emissions.

Jefferies' reiterated 'Buy' rating on Vertiv Holdings Co (VRT) reflects the company's strong position in the AI data center market, driven by its strategic partnerships, innovative solutions, and commitment to sustainability. As AI continues to reshape the data center industry, Vertiv's expertise in power and cooling solutions positions the company to capitalize on the growing demand for eco-friendly data center solutions. Investors should consider Jefferies' price target of $145 as Vertiv continues to execute on its growth strategy and deliver value to shareholders.