AI Infrastructure Investment Outlook is Promising
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy VRT?
Source: Fool
- Market Growth Potential: Analysts predict that spending on AI infrastructure will soar from $500 billion last year to $1.4 trillion by 2030, representing an annual growth rate exceeding 20%, presenting an irresistible opportunity for investors.
- Vertiv's Innovative Solutions: Vertiv's newly launched MegaMod HDX modular liquid cooling solution combines direct-to-chip liquid cooling with air-cooled architectures, expected to enhance its market share in the global data center cooling market, which is projected to grow at an average rate of over 10% per year.
- Stable Income from Digital Realty Trust: As a real estate investment trust, Digital Realty Trust owns over 300 data centers, generating $1.6 billion in revenue in Q3 2023, a 10% year-over-year increase, while maintaining a steady dividend yield of 3.1%, providing reliable income for investors.
- Nebius Group's Risks and Opportunities: Despite Nebius Group's revenue soaring 355% year-over-year to $146 million in Q3 2023, its losses widened from $44 million to nearly $120 million; however, a multi-billion dollar deal with Microsoft offers potential support for future growth.
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Analyst Views on VRT
Wall Street analysts forecast VRT stock price to fall
17 Analyst Rating
15 Buy
2 Hold
0 Sell
Strong Buy
Current: 243.210
Low
195.00
Averages
206.07
High
230.00
Current: 243.210
Low
195.00
Averages
206.07
High
230.00
About VRT
Vertiv Holdings Co. is a global provider of critical digital infrastructure. It provides mission-critical digital infrastructure technologies and lifecycle services primarily for data centers, communication networks, and commercial and industrial environments. Its offerings include alternate current (AC) and direct current (DC) power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, management systems for monitoring and controlling digital infrastructure, and services. Its business segments include Americas, Asia Pacific, and Europe, Middle East & Africa. The Americas segment includes products which include AC and DC power management, thermal management, low/medium voltage switchgear, busbar, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software for managing I.T. equipment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vertiv Positioned for Significant Growth Driven by AI Infrastructure
- Significant Revenue Growth: Vertiv's Q4 2025 annual revenue surged by 27.5% year-over-year to $10.2 billion, with adjusted earnings rising 47% to $4.20 per share, showcasing the company's strong financial performance in an AI-driven market.
- Order Surge: Over the past 12 months, Vertiv's orders increased by 81%, with a book-to-bill ratio of 2.9, indicating that demand for AI infrastructure has led to orders exceeding fulfillment capacity, resulting in a revenue backlog of $15 billion.
- Future Growth Expectations: The company anticipates a 32% revenue growth in 2026, with a midpoint guidance of $13.5 billion, and a projected 43% increase in earnings per share to $6.02, reflecting optimism about the future AI market.
- Capital Expenditure Boost: The top four U.S. hyperscalers are expected to spend $700 billion this year, a 78% increase from 2025, which will further drive Vertiv's order growth and support the company's potential for higher market valuation in the coming years.
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Long-Term Investment Potential of Palantir and Vertiv
- Palantir Profit Growth: Palantir Technologies achieved a 56% revenue increase in 2025, reaching $4.48 billion, with adjusted earnings rising 83% to $0.75 per share, demonstrating strong traction for its AI software platform among customers, and expects revenue growth to accelerate to nearly 61% in 2026.
- Significant Customer Growth: Palantir's customer count increased by 34% in 2025, signing 180 deals worth over $1 million, a 39% increase from the previous year, indicating accelerated deployment of its AI solutions, further enhancing profitability.
- Vertiv Order Surge: Vertiv's overall revenue grew by 28% to $10.2 billion in 2025, with a projected 32% increase to $13.5 billion in 2026, driven by strong demand for global AI infrastructure investment, which is expected to reach $1.4 trillion by 2030.
- Robust Order Backlog: Vertiv experienced an 81% increase in orders in 2025, ending the year with a backlog of $15 billion, while revenue backlog grew by 109%, establishing a solid foundation for the company's long-term growth and showcasing its competitive edge in the AI infrastructure market.
See More
Vertiv's $15 Billion Backlog Signals Strong AI Demand in 2026
AI Investment Focus: The AI investment narrative has shifted from solely focusing on chip manufacturers like NVIDIA to addressing the physical infrastructure needed to support AI operations, particularly in cooling and power management.
Vertiv's Market Position: Vertiv Holdings has emerged as a key player in the AI sector, providing essential cooling and power systems that enable high-performance chips to function effectively, thus positioning itself as a critical utility company for the digital economy.
Financial Performance: Vertiv reported impressive financial results, including a $2.88 billion net sales figure for Q4 2025, reflecting a 19% organic increase year-over-year, and a significant backlog of $15 billion, indicating strong future demand.
Strategic Collaborations and Growth: The company is collaborating with NVIDIA to develop advanced power architectures and has established itself as a market leader in liquid cooling solutions, ensuring it remains integral to the evolving AI infrastructure landscape.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
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Vertiv Holdings Reports Strong Q4 Results and Positive Outlook
- Significant Performance Growth: Vertiv Holdings reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, indicating strong performance in the data center and AI infrastructure sectors.
- Substantial Free Cash Flow Increase: The company saw a 66% rise in free cash flow to $1.8 billion in 2025, enhancing financial flexibility and providing ample funding for future investments.
- Strong Backlog Growth: Vertiv's backlog surged 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, reflecting ongoing demand for its products despite market concerns about the AI sector's growth prospects.
- Optimistic Future Growth Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, supported by a $15 billion backlog, indicating that investors still have opportunities to profit from this AI infrastructure company.
See More
Vertiv Reports Strong Q4 Results, Shares Surge
- Significant Performance Growth: Vertiv reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, demonstrating strong performance in the rapidly growing AI data center market.
- Substantial Free Cash Flow Increase: The company’s free cash flow surged by 66% to $1.8 billion in 2025, providing ample funding support for future investments and expansion initiatives.
- Record Backlog: Vertiv's backlog skyrocketed by 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, indicating sustained strong demand for its infrastructure products and boosting investor confidence.
- Optimistic Future Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, and this positive outlook is bolstered by a robust backlog, highlighting the company's ongoing growth potential in the AI infrastructure sector.
See More
Vertiv Positioned for Significant Growth Driven by AI Infrastructure
- Significant Revenue Growth: Vertiv's Q4 2025 annual revenue surged by 27.5% year-over-year to $10.2 billion, with adjusted earnings rising 47% to $4.20 per share, showcasing the company's strong financial performance in an AI-driven market.
- Order Surge: Over the past 12 months, Vertiv's orders increased by 81%, with a book-to-bill ratio of 2.9, indicating that demand for AI infrastructure has led to orders exceeding fulfillment capacity, resulting in a revenue backlog of $15 billion.
- Future Growth Expectations: The company anticipates a 32% revenue growth in 2026, with a midpoint guidance of $13.5 billion, and a projected 43% increase in earnings per share to $6.02, reflecting optimism about the future AI market.
- Capital Expenditure Boost: The top four U.S. hyperscalers are expected to spend $700 billion this year, a 78% increase from 2025, which will further drive Vertiv's order growth and support the company's potential for higher market valuation in the coming years.
See More
Long-Term Investment Potential of Palantir and Vertiv
- Palantir Profit Growth: Palantir Technologies achieved a 56% revenue increase in 2025, reaching $4.48 billion, with adjusted earnings rising 83% to $0.75 per share, demonstrating strong traction for its AI software platform among customers, and expects revenue growth to accelerate to nearly 61% in 2026.
- Significant Customer Growth: Palantir's customer count increased by 34% in 2025, signing 180 deals worth over $1 million, a 39% increase from the previous year, indicating accelerated deployment of its AI solutions, further enhancing profitability.
- Vertiv Order Surge: Vertiv's overall revenue grew by 28% to $10.2 billion in 2025, with a projected 32% increase to $13.5 billion in 2026, driven by strong demand for global AI infrastructure investment, which is expected to reach $1.4 trillion by 2030.
- Robust Order Backlog: Vertiv experienced an 81% increase in orders in 2025, ending the year with a backlog of $15 billion, while revenue backlog grew by 109%, establishing a solid foundation for the company's long-term growth and showcasing its competitive edge in the AI infrastructure market.
See More
Vertiv's $15 Billion Backlog Signals Strong AI Demand in 2026
AI Investment Focus: The AI investment narrative has shifted from solely focusing on chip manufacturers like NVIDIA to addressing the physical infrastructure needed to support AI operations, particularly in cooling and power management.
Vertiv's Market Position: Vertiv Holdings has emerged as a key player in the AI sector, providing essential cooling and power systems that enable high-performance chips to function effectively, thus positioning itself as a critical utility company for the digital economy.
Financial Performance: Vertiv reported impressive financial results, including a $2.88 billion net sales figure for Q4 2025, reflecting a 19% organic increase year-over-year, and a significant backlog of $15 billion, indicating strong future demand.
Strategic Collaborations and Growth: The company is collaborating with NVIDIA to develop advanced power architectures and has established itself as a market leader in liquid cooling solutions, ensuring it remains integral to the evolving AI infrastructure landscape.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Vertiv Holdings Reports Strong Q4 Results and Positive Outlook
- Significant Performance Growth: Vertiv Holdings reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, indicating strong performance in the data center and AI infrastructure sectors.
- Substantial Free Cash Flow Increase: The company saw a 66% rise in free cash flow to $1.8 billion in 2025, enhancing financial flexibility and providing ample funding for future investments.
- Strong Backlog Growth: Vertiv's backlog surged 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, reflecting ongoing demand for its products despite market concerns about the AI sector's growth prospects.
- Optimistic Future Growth Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, supported by a $15 billion backlog, indicating that investors still have opportunities to profit from this AI infrastructure company.
See More
Vertiv Reports Strong Q4 Results, Shares Surge
- Significant Performance Growth: Vertiv reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, demonstrating strong performance in the rapidly growing AI data center market.
- Substantial Free Cash Flow Increase: The company’s free cash flow surged by 66% to $1.8 billion in 2025, providing ample funding support for future investments and expansion initiatives.
- Record Backlog: Vertiv's backlog skyrocketed by 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, indicating sustained strong demand for its infrastructure products and boosting investor confidence.
- Optimistic Future Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, and this positive outlook is bolstered by a robust backlog, highlighting the company's ongoing growth potential in the AI infrastructure sector.
See More
