Vertiv Gains From AI and Data Center Growth: A Sign for More Upside?

Vertiv VRT is benefiting from the accelerating adoption of artificial intelligence (AI) and the growing demand for data centers globally. 

In the third quarter of 2025, Net sales increased 29% year over year to $2.68 billion. This growth is largely driven by the rapid expansion of AI infrastructure and the increasing need for data storage and processing capabilities.

The global acceleration of AI adoption is driving significant demand for data center infrastructure. Vertiv is capitalizing on this trend, particularly in the Americas, which saw a 43% organic sales growth in the third quarter of 2025, and APAC, which grew 21%.

The company’s robust order pipeline and backlog further underscore its potential for continued growth. In the trailing 12 months, organic orders grew approximately 21%, with a book-to-bill of 1.4 times for the third quarter of 2025, indicating a strong prospect. Backlog grew 12% sequentially and 30% year over year to $9.5 billion. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.

Vertiv is expanding its product portfolio through acquisitions, which is noteworthy. Vertiv recently announced an agreement to acquire Purge Rite Intermediate for approximately $1.0 billion in cash, with up to $250 million in additional earn-out, to enhance its liquid-cooling and thermal-management services for AI and high-performance data centers.

Vertiv Faces Stiff Competition

Vertiv is facing stiff competition from Super Micro Computer SMCI and Applied Digital APLD, which are expanding their capabilities to serve hyperscale and enterprise AI data center deployments.

Applied Digital is benefiting from robust demand for data center infrastructure. The increasing focus on energy efficiency is a noteworthy development in the data center industry.  Applied Digital has secured long-term lease agreements with major hyperscalers like CoreWeave, including a 15-year contract for 400 megawatts at Polaris Forge 1, valued at approximately $11 billion. The CoreWeave partnership supports Applied Digital’s shift from cryptocurrency mining to AI-optimized data center infrastructure.

Super Micro Computer is well-positioned to benefit from the growing demand for AI infrastructure. Its liquid cooling technology and modular design approach are likely to support sustainable growth in the data center end market. Super Micro Computer is also leveraging its innovative Data Center Building Block Solution to provide end-to-end server and data center solutions, including plug-and-play servers, storage, cooling systems, power management, and software. This approach helps customers accelerate deployment, optimize performance, and reduce power consumption.

Vertiv’s Share Price Performance, Valuation, and Estimates

VRT’s shares have gained 46.7% year to date. The broader Zacks Computer & Technology sector has appreciated 23.6%, while the Zacks Computers - IT Services industry has plunged 17.3% in the same period.

VRT Stock's Performance

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 18.16X compared with the Computer and Technology sector’s 10.31X. VRT has a Value Score of F.

Price/Book

The consensus mark for 2025 earnings is pegged at $4.11 per share, which has increased 7% over the past 30 days. This indicates a 44.21% increase from the reported figure of 2024.

Vertiv Holdings Co. Price and Consensus

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

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research