Vertiv Holdings Co (VRT): A Bull Case Theory

We came across a bullish thesis on Vertiv Holdings Co on The AI Architect’s Substack. In this article, we will summarize the bulls’ thesis on VRT. Vertiv Holdings Co's share was trading at $177.75 as of February 5th. VRT’s trailing and forward P/E were 68.89 and 34.48, respectively according to Yahoo Finance.

Vertiv (VRT) is emerging as a pure-play beneficiary of the AI infrastructure supercycle, providing critical “grid-to-chip” power and thermal solutions for modern data centers. The company designs, builds, and services uninterruptible power supplies, busways, racks, liquid-cooling systems, and integrated solutions that address the surging electricity and heat demands of high-density AI deployments.

AI-driven compute growth and rising data-center power requirements have translated into a 60% year-over-year jump in Q3 2025 organic orders, 29% net sales growth, a 63% increase in adjusted EPS, and a $9.5 billion backlog, highlighting Vertiv’s strong execution and compounding earnings potential. Margins are expanding, with adjusted operating profit reaching 22.3%, reflecting operating leverage and procurement productivity. Vertiv’s collaboration with NVIDIA to develop 800 VDC platforms, alongside advanced liquid-cooling systems and global reference designs, reinforces its moat by providing validated architectures that reduce deployment risk and increase switching costs.

 Its extensive field-service network, software, digital twins, and AI reference architectures further lock in recurring revenue streams and enhance cross-selling opportunities. Bolt-on acquisitions like Great Lakes Data Racks & Cabinets and PurgeRite strengthen its thermal and power capabilities, demonstrating strategic optionality and confidence in multi-year AI demand. While skeptics cite hyperscaler capex cyclicality and potential competition, the secular tailwind from AI-driven infrastructure growth, validated by independent research and record data-center spend projections, underpins durable demand.

With strong cash flow, high operating discipline, and multiple catalysts—including new product releases, platform wins, and expanded service capacity—Vertiv offers investors a compelling opportunity to capture structural upside from the global AI data-center buildout, combining growth, margin expansion, and strategic optionality in a single, high-quality industrial platform.

Previously, we covered a bullish thesis on Vertiv Holdings Co (VRT) by OppCost in May 2025, highlighting its leadership in digital infrastructure, AI-driven demand, margin expansion, and strategic acquisitions. VRT’s stock price has appreciated by approximately 68.67% since our coverage. The AI Architect shares a similar perspective but emphasizes Vertiv’s AI infrastructure execution, including grid-to-chip solutions and advanced cooling systems.

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 risk and potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.