Vertiv Upped to Buy at Melius, Price Target Raised to $165

Melius Research has upgraded Vertiv to buy from hold, citing benefits from accelerating AI spending and declining capital expenditure risks. The firm has raised its price target to $165, representing a 31% upside. Vertiv provides critical digital infrastructure and is expected to benefit from increased spending on artificial intelligence.

Melius Research has upgraded Vertiv Holdings (VRTX) to a 'Buy' rating from 'Hold', citing benefits from accelerating AI spending and declining capital expenditure risks. The firm has raised its price target to $165, representing a 31% upside. Vertiv provides critical digital infrastructure and is expected to benefit from increased spending on artificial intelligence [1].

Vertiv's core business—designing and manufacturing thermal management, power, and modular infrastructure solutions—is directly tied to the growth of AI-driven data centers. The company's strategic partnerships with industry leaders like NVIDIA, combined with a robust order backlog, position Vertiv as a key player in this rapidly evolving space [1].

In Q1 2025, Vertiv reported a 25% year-over-year revenue surge to $2.04 billion, driven by significant growth in the Asia Pacific and Americas regions, particularly in AI/5G and hyperscale/cloud segments. The company's backlog hit $7.9 billion, providing visibility into future revenue growth [1]. Melius Research highlights that these financial metrics, along with Vertiv's strategic positioning, make it a compelling long-term investment opportunity.

The AI-1 batteries developed by Enovix Corporation (ENVX), which have been shipped to a leading smartphone manufacturer, further underscore the growing demand for advanced power solutions in AI-enabled devices [2]. Enovix's silicon-anode technology addresses the increasing power demands from AI-enabled mobile devices, aligning with Vertiv's focus on thermal management and power solutions.

Vertiv's recent event in Riyadh, Saudi Arabia, showcased its mission-critical infrastructure solutions, demonstrating the company's commitment to delivering consistent reliability, scalability, and operational continuity in AI workloads and high-density computing environments [3]. This event underscores Vertiv's ability to cultivate smarter, more resilient critical digital infrastructure across the region, aligning with Saudi Arabia's Vision 2030 ambitions.

Conclusion: Vertiv's strategic positioning, robust financial performance, and alignment with the growing AI infrastructure market make it an attractive investment opportunity. Melius Research's upgrade to 'Buy' and the raised price target reflect the company's potential to capitalize on accelerating AI spending and declining capital expenditure risks.

References:
[1] https://www.ainvest.com/news/vertiv-holdings-vrtx-strategic-bet-ai-infrastructure-growth-2507/
[2] https://in.investing.com/news/company-news/enovix-ships-first-highdensity-ai1-batteries-to-smartphone-maker-93CH-4902077
[3] https://www.vertiv.com/en-emea/about/news-and-insights/news-releases/vertiv-demonstrates-mission-critical-infrastructure-solutions-in-saudi-arabia/