Vertiv Stock Rises on Backlog Surge: Is This a Sign of More Upside?

Vertiv VRT is emerging as a key player in the global AI infrastructure buildout, offering advanced power and thermal solutions tailored for high-density compute environments.

Rising demand for AI-ready infrastructure fueled Vertiv’s backlog to $7.9 billion in the first quarter of 2025, up 25% year over year and 10% sequentially. With revenues rising 24.2% year over year to $2.04 billion, the book-to-bill ratio stood at 1.4X, reflecting sustained order strength as hyperscalers and colocation providers continue to scale capacity across North America and beyond.

Momentum in Vertiv’s order base is being driven by sustained investments in R&D and capacity, enabling execution at greater scale. As AI-scale deployments become more complex, customers are prioritizing integrated thermal and power infrastructure. Vertiv’s collaboration with NVIDIA around GB200 and GB300 reference designs is serving as a key growth driver, reinforcing its role in large-scale infrastructure rollouts.

Backed by strong backlog execution and elevated deal volume, Vertiv now expects 2025 revenues between $9.325 billion and $9.575 billion, implying 18% growth at the midpoint. Organic net sales growth is projected between 16.5% and 19.5%, driven by continued strength in AI-related infrastructure activity. With visibility supported by a strong order pipeline and expanding infrastructure needs, Vertiv is well-placed to capitalize on secular tailwinds in 2025.

Vertiv Faces Stiff Competition in AI Infrastrucutre

Vertiv’s expanding role in AI infrastructure is attracting competition from the likes of Super Micro Computer SMCI and Dell Technologies DELL, both scaling to meet surging demand from data centers and hyperscalers.

Super Micro Computer is advancing GPU-optimized, liquid-cooled server systems designed for high-density AI workloads. Its energy-efficient platforms and fast deployment cycles help address growing infrastructure complexity, positioning Super Micro Computer as a credible peer in large-scale AI builds.

Dell Technologies is bolstering its integrated infrastructure portfolio, offering scalable systems to power AI-native applications. With a strong global footprint and broad product suite, Dell Technologies is increasingly competing with Vertiv for enterprise and cloud infrastructure deals.

Vertiv’s Share Price Performance, Valuation and Estimates

VRT’s shares have increased 10.8% year to date, while the broader Zacks Computer & Technology sector has appreciated 7% and the Zacks Computers - IT Services industry has plunged 5.7%.

VRT Performance

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 17.99X compared with the Computer and Technology sector’s 10.2X. VRT has a Value Score of D.

VRT Valuation

The Zacks Consensus Estimate for VRT’s 2025 earnings is pegged at $3.56 per share, up by a penny over the past 30 days. The figure indicates a 24.91% increase year over year.

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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