VRTX Soars 2.57% on AI Infrastructure Momentum: Is This the Start of a New Bull Run?

Summary
• Vertiv (VRTX) surges 2.57% to $175.25, outpacing its 52-week high of $202.45
• Analysts upgrade price targets to $200–$230, citing AI-driven demand and strategic partnerships
• Options frenzy: 2026-01-23 contracts see 6.02% turnover in leveraged ETF VRTL
Vertiv’s intraday rally reflects a perfect storm of AI infrastructure tailwinds, strategic partnerships with tech giants, and analyst optimism. With a $9.5B backlog and 26–28% organic sales growth guidance, the stock’s 2.57% surge underscores its role as a linchpin in the data center revolution. The $175.25 level, just 14% below its 52-week high, now tests critical technical resistance.

AI Infrastructure Demand and Analyst Upgrades Fuel Rally
Vertiv’s 2.57% intraday surge stems from a confluence of factors: 1) AI-driven data center demand accelerating, with the global market projected to grow at 18.43% CAGR through 2031; 2) Strategic partnerships with Nvidia (800V HVDC systems), Oklo (nuclear-powered data centers), and Caterpillar (industrial gas turbines); and 3) Analyst upgrades from Barclays ($200 PT) and Goldman Sachs ($204 PT). The stock’s 42.6% 2025 gain and $9.5B backlog—projected to translate into $12.4B 2026 sales—signal robust near-term visibility. Additionally, the company’s 21% organic order growth and 1.4x book-to-bill ratio in Q3 2025 highlight its structural advantage in the AI infrastructure boom.

Communication Equipment Sector Gains Momentum as Vertiv Outpaces Peers
The Communication Equipment sector, led by Emerson Electric (EMR) up 0.73%, is riding AI and 5G tailwinds. Vertiv’s 2.57% rally outperforms sector averages, driven by its specialized data center infrastructure focus versus EMR’s broader industrial portfolio. While Amphenol (APH) also benefits from AI demand, Vertiv’s comprehensive power/cooling solutions and 56.6x P/E ratio position it as a more aggressive play on the data center boom. The sector’s 18.43% CAGR through 2031 further validates Vertiv’s growth trajectory.

ETF and Options Playbook: Leveraging VRT’s Bullish Momentum
• GraniteShares 2x Long VRT Daily ETF (VRTXL): 6.02% intraday gain, ideal for leveraged exposure
• 200-day MA: $136.42 (well below current price), RSI: 54.5 (neutral), MACD: 0.72 (bullish divergence)
• Bollinger Bands: $179.41 (upper), $165.88 (middle), $152.35 (lower)—price near upper band suggests overbought
• Short-term bullish trend confirmed by 54.5 RSI and 0.72 MACD histogram. Aggressive bulls may consider VRTXL for leveraged exposure, while conservative traders should watch the $165.88 middle Bollinger level for a potential pullback entry.
Top Options Contracts:
• VRTX20260123C175: Call, $175 strike, 2026-01-23 expiry, IV 47.22%, leverage 31.74%, delta 0.536, theta -0.685, gamma 0.0305, turnover 255,346
• VRTX20260123C180: Call, $180 strike, 2026-01-23 expiry, IV 46.96%, leverage 52.39%, delta 0.385, theta -0.563, gamma 0.0295, turnover 97,155
VRTX20260123C175 offers a 31.74% leverage ratio with moderate delta (0.536), ideal for a 5% upside scenario (target $184.01). The 47.22% IV and 0.0305 gamma ensure sensitivity to price swings. VRTX20260123C180 provides 52.39% leverage with a 0.385 delta, suitable for a breakout above $180. A 5% move to $184.01 yields a $4.01 payoff for the $175 call and $4.01 for the $180 call. Both contracts benefit from high turnover (255k+ and 97k+), ensuring liquidity. Aggressive bulls should prioritize VRTX20260123C175 for a 5% upside play, while VRTX20260123C180 offers a safer entry if $180 holds.

Backtest Vertiv Holdings Stock Performance
VRT has demonstrated positive short-to-medium-term performance following a 3% intraday increase. The backtest data shows that 54.71% of days experienced a return in the first three days after the surge, with an average return of 0.83% over that period. The 10-day win rate is even higher at 63.96%, with an average return of 3.25%. Over 30 days, the win rate is 68.39%, with an average return of 9.96%. The maximum return during the backtest was 20.53%, which occurred on day 59 after the surge, indicating that VRT can continue to perform well in the weeks following an intraday bounce.

Bullish Setup Confirmed: VRT’s AI Infrastructure Play Gains Momentum
Vertiv’s 2.57% rally on AI infrastructure demand and analyst upgrades signals a sustainable bullish trend. The stock’s 54.5 RSI and 0.72 MACD histogram suggest momentum remains intact, with the $179.41 Bollinger upper band as the next key target. Investors should monitor the $165.88 middle Bollinger level for a potential pullback entry. The sector leader, Emerson Electric (EMR), up 0.73%, reinforces the broader industry tailwinds. Aggressive bulls should prioritize VRTX20260123C175 for a 5% upside play, while conservative traders may wait for a test of the $165.88 support. Watch for a breakdown below $165.88 to trigger a reevaluation of the bullish thesis.