VRT Benefits From Robust AI Infrastructure Demand: More Upside Ahead?

Vertiv VRT is benefiting from the robust demand for AI-driven infrastructure, which is driving significant growth in the data center market. The company’s extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, has been noteworthy. In the trailing 12 months, organic orders grew approximately 81%, with a book-to-bill of 2.9 times for the fourth quarter of 2025, indicating a strong prospect.

Vertiv’s expanding portfolio has been noteworthy. In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15.0 billion, up 109% compared with the fourth quarter of 2024 and 57% sequentially. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.

Further expanding its portfolio, Vertiv recently announced its role in advancing converged physical infrastructure for NVIDIA’s next-generation AI factory designs. It will deliver simulation-ready power and cooling systems with standardized, scalable 12.5MW building blocks. This approach will help accelerate deployment and lower complexity. Through this collaboration, Vertiv aims to enable faster and more reliable AI factory setups by integrating power, cooling, controls and lifecycle services into digitally validated, high-efficiency infrastructure models.

Vertiv’s efforts to strengthen support for rapidly growing AI and high-density data center demand have been a major driver of growth. For first-quarter 2026, revenues are expected to be between $2.5 billion and $2.7 billion. Organic net sales are expected to increase in the 18% to 26% range.

Vertiv Faces Stiff Competition

Vertiv is facing increasing competition from Super Micro Computer SMCI and Hewlett-Packard Enterprise HPE. Both Super Micro Computer and Hewlett-Packard Enterprise are expanding their capabilities in the AI infrastructure market.

Super Micro Computer is well-positioned to benefit from the growing demand for AI infrastructure. The company recently announced new enterprise AI systems powered by NVIDIA RTX PRO 4500 Blackwell GPUs, expanding its portfolio with scalable, energy-efficient solutions for data centers and edge computing.

Hewlett-Packard Enterprise’s expansion into the AI infrastructure market has been noteworthy. The company recently announced the HPE AI Grid, an end-to-end solution built on NVIDIA architecture to deliver ultra-low-latency distributed AI inference across edge and regional sites, with early trials by Comcast demonstrating real-time AI applications.

Vertiv’s Share Price Performance, Valuation, and Estimates

VRT’s shares have gained 79.4% in the past six-month period against the broader Zacks Computer & Technology sector and the Zacks Computers - IT Services industry’s decline of 4% and 21.4%, respectively.

VRT Stock Performance

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Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 24.84X compared with the Computer and Technology sector’s 9.16X. VRT has a Value Score of F.

VRT Valuation

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The Zacks Consensus Estimate for 2026 earnings is pegged at $6.15 per share, which has declined by a couple of pennies over the past 30 days. This indicates a 46.43% increase from the reported figure of 2025.

Vertiv Holdings Co. Price and Consensus

Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote

Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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