Vertiv Holdings Co (VRT): A Bull Case Theory

We came across a bullish thesis on Vertiv Holdings Co on X.com by @TheValueist. In this article, we will summarize the bulls’ thesis on VRT. Vertiv Holdings Co's share was trading at $160.66 as of December 16th. VRT’s trailing and forward P/E were 60.63 and 30.30 respectively according to Yahoo Finance.

Vertiv Holdings Co designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT is increasingly positioned as a core beneficiary of the global AI data center build-out, with roughly 80% of revenue tied to data centers and leadership positions across thermal management, large-scale UPS, and power distribution.

Its scale, global manufacturing footprint, and expanding service network underpin deep relationships with hyperscalers, colocation providers, and NVIDIA, positioning Vertiv as a system-level partner rather than a component supplier. Demand visibility is unusually strong, with orders up sharply year over year, backlog approaching $9.5 billion, and a book-to-bill well above 1x, providing multi-year revenue visibility into at least 2026.

Management attributes this strength to structural drivers including accelerating AI monetization, geographic expansion of AI infrastructure beyond North America, and grid and labor constraints that elongate rather than truncate the cycle while increasing Vertiv’s content per site through prefabrication and behind-the-meter solutions. Strategically, Vertiv is shifting toward higher-value architectures such as 800V DC power, co-developed with NVIDIA, and system-level offerings like OneCore and SmartRun that compress deployment timelines and increase share of wallet. Services, now over 20% of revenue, are a key differentiator, with rising margins and intensity as AI infrastructure grows more complex.

The planned acquisition of PurgeRite reinforces this service moat in liquid cooling at an attractive valuation and strengthens Vertiv’s lifecycle engagement with customers. Financially, margins, free cash flow, and leverage have improved materially, supporting disciplined reinvestment and bolt-on M&A. However, the stock already reflects a premium valuation that capitalizes sustained high-teens growth and continued margin expansion. While Vertiv offers compelling exposure to AI infrastructure bottlenecks with strong execution and management quality, returns from current levels depend largely on earnings delivery and the durability of AI data center capex beyond 2026 rather than further multiple expansion.

Previously we covered a bullish thesis on Vertiv Holdings Co (VRT) by OppCost in May 2025, which highlighted AI-driven data center demand, margin expansion, and improving free cash flow. The company’s stock price has appreciated approximately by 52% since our coverage. This is because the thesis played out. The thesis still stands as secular data center growth remains intact. @TheValueist shares a similar thesis but emphasizes on system-level positioning, backlog visibility, and valuation risk.

Vertiv Holdings Co is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held VRT at the end of the third quarter which was 104 in the previous quarter. While we acknowledge the potential of VRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.