Hyperscalers Invest Billions in AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 35 minutes ago
0mins
Source: Fool
- Surge in Vertiv Demand: Vertiv's liquid cooling products are experiencing unprecedented demand due to modern AI processors' cooling needs, with Q1 sales rising 30% year-over-year to $2.6 billion, and projected sales for 2026 expected to reach $13.5 to $14 billion, driving strong growth in the data center market.
- Extended Delivery Windows: According to Vertiv's CEO, the backlog has elongated as customers lock in large-scale projects with 12- to 18-month delivery windows, providing visibility into earnings well into 2027, with growth expected to accelerate in the second half of the year.
- Bloom Energy's Rapid Growth: Bloom Energy's stock has surged 1,210% since early 2025, with Q1 revenue increasing 130% year-over-year to $751 million, and projected annual revenue between $3.4 billion and $3.8 billion, reflecting strong demand for low-carbon power solutions.
- Manufacturing Capacity Expansion: Bloom Energy's annual production capacity supports up to 5 gigawatts, with management adding capacity at a rate of
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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: 319.780
Low
195.00
Averages
206.07
High
230.00
Current: 319.780
Low
195.00
Averages
206.07
High
230.00
About VRT
Vertiv Holdings Co. provides mission-critical digital infrastructure technologies and lifecycle services primarily for data centers, communication networks, and commercial and industrial environments. The Company operates in three business segments: the Americas; Asia Pacific, and Europe, Middle East & Africa. The Company's offerings include alternate current (AC) and direct current (DC) power management, thermal management, low/medium voltage switchgear, busbar, air cooled and liquid cooled thermal management products, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, software for managing IT equipment, management systems for monitoring and controlling digital infrastructure, and services. It also provides preventative maintenance, acceptance testing, engineering and consulting, remote monitoring, training, spare parts, specialized fluid management, and others.
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.
Hyperscalers Invest Billions in AI Infrastructure
- Surge in Vertiv Demand: Vertiv's liquid cooling products are experiencing unprecedented demand due to modern AI processors' cooling needs, with Q1 sales rising 30% year-over-year to $2.6 billion, and projected sales for 2026 expected to reach $13.5 to $14 billion, driving strong growth in the data center market.
- Extended Delivery Windows: According to Vertiv's CEO, the backlog has elongated as customers lock in large-scale projects with 12- to 18-month delivery windows, providing visibility into earnings well into 2027, with growth expected to accelerate in the second half of the year.
- Bloom Energy's Rapid Growth: Bloom Energy's stock has surged 1,210% since early 2025, with Q1 revenue increasing 130% year-over-year to $751 million, and projected annual revenue between $3.4 billion and $3.8 billion, reflecting strong demand for low-carbon power solutions.
- Manufacturing Capacity Expansion: Bloom Energy's annual production capacity supports up to 5 gigawatts, with management adding capacity at a rate of
See More
Industrial Companies Positioned for AI Investment Opportunities
- BAE Systems AI Integration: BAE Systems has partnered with Scale AI to enhance its AI capabilities for the Department of Defense, which is expected to improve command and control in military operations, thereby gaining a human-machine advantage in future missions.
- GE Vernova Infrastructure Development: GE Vernova's collaboration with Duke Energy to supply 11 natural gas turbines for data centers is projected to drive its 2026 revenue to $9.3 billion with a net income of $4.7 billion, indicating strong market demand.
- Vertiv Market Growth: Vertiv's partnerships with Caterpillar and Nvidia aim to develop advanced cooling systems, with projected net sales for 2026 expected to reach between $13.5 billion and $14 billion, significantly up from $10.2 billion in 2025, reflecting ongoing demand in data centers.
- Long-Term Investment Potential: Despite short-term volatility, BAE Systems, GE Vernova, and Vertiv all demonstrate strong long-term growth potential, particularly against the backdrop of rapid advancements in AI and data center infrastructure, attracting investor interest.
See More
Artificial Intelligence Boosts Revenue in Industrial Sector
- BAE Systems AI Integration: BAE Systems has partnered with Scale AI to enhance its AI capabilities for the Department of Defense, which is expected to strengthen its competitiveness in electronic warfare and cybersecurity, potentially leading to higher revenue growth in the future.
- Strong Performance of GE Vernova: GE Vernova reported $9.3 billion in revenue and $4.7 billion in net income in its Q1 2026 earnings, with stock price up nearly 59%, highlighting its critical role in data center infrastructure, promising sustained returns for long-term investors.
- Vertiv's Market Expansion: Vertiv's collaborations with Caterpillar and Nvidia are driving innovation in data center cooling and energy optimization solutions, with projected net sales for 2026 expected to reach between $13.5 billion and $14 billion, while its stock price has surged over 100% in 2026.
- Long-term Potential of AI Market: The global AI market is projected to grow from $390 billion in 2025 to $3.4 trillion by 2033, indicating that despite short-term volatility, there are significant long-term investment opportunities for industrial companies, attracting investor interest.
See More
Major Indexes Rise as Oil Prices Plunge
- Oil Price Drop: Oil prices have significantly declined due to weak global demand, with WTI crude falling below $70 per barrel, which could lower transportation and production costs, positively impacting the overall economy.
- Amazon Buy Signal: Amazon's stock has flashed a buy signal, with analysts predicting strong future growth potential, likely attracting more investor interest and further driving its stock price upward.
- Snowflake Surge: Snowflake experienced a strong rebound in after-hours trading, with its stock price rising, reflecting market optimism regarding its financial performance and future outlook, potentially drawing more institutional investor attention.
- Overall Market Performance: Amid the drop in oil prices, major indexes have generally risen, indicating increased investor confidence in economic recovery, which may promote further capital inflows into the stock market.
See More
Three Strong Momentum Stocks to Buy Now
- Momentum Investment Strategy: Following Richard Driehaus's 'buy high and sell higher' strategy, Micron, Murphy USA, and Vertiv are identified as strong momentum stocks, showcasing continued upside potential that attracts investors seeking exceptional returns.
- Earnings Surprise Performance: Micron boasts an average earnings surprise of 21.7% over the last four quarters, while Murphy USA and Vertiv report 16.6% and 14.7% respectively, indicating strong performance against market expectations and boosting investor confidence.
- Momentum Scores: All three companies have received a B momentum score, reflecting their strong price trends and aligning with investor preferences for high-growth stocks, which could lead to higher investment returns.
- Long-term Investment Potential: Since 2000, Zacks' top stock-picking strategies have outperformed the S&P 500's average gain of 7.7% per year, and the performance of these momentum stocks is expected to further enhance overall portfolio returns, appealing to investors looking for long-term growth.
See More
Soaring Datacenter Demand Boosts AI Stocks
- Surging Market Demand: The soaring demand for datacenters presents unprecedented growth opportunities for AI stocks, particularly as companies like Nvidia and Intel rely heavily on critical technologies, solidifying their market dominance.
- Unique Company Spotlight: A recent report highlights a little-known company dubbed an 'Indispensable Monopoly' that provides essential technology needed by Nvidia and Intel, potentially positioning it as a key player in future market competition.
- Investment Recommendation Analysis: Although Arista Networks was not included in the latest investment recommendations, analysts identified 10 stocks that are currently worth investing in, which could yield substantial returns in the coming years, akin to the historical performances of Netflix and Nvidia.
- Investor Return Comparison: According to Stock Advisor, the total average return stands at 993%, significantly outperforming the S&P 500's 208%, showcasing the strong performance of its recommended stocks and attracting more investor interest.
See More
Hyperscalers Invest Billions in AI Infrastructure
- Surge in Vertiv Demand: Vertiv's liquid cooling products are experiencing unprecedented demand due to modern AI processors' cooling needs, with Q1 sales rising 30% year-over-year to $2.6 billion, and projected sales for 2026 expected to reach $13.5 to $14 billion, driving strong growth in the data center market.
- Extended Delivery Windows: According to Vertiv's CEO, the backlog has elongated as customers lock in large-scale projects with 12- to 18-month delivery windows, providing visibility into earnings well into 2027, with growth expected to accelerate in the second half of the year.
- Bloom Energy's Rapid Growth: Bloom Energy's stock has surged 1,210% since early 2025, with Q1 revenue increasing 130% year-over-year to $751 million, and projected annual revenue between $3.4 billion and $3.8 billion, reflecting strong demand for low-carbon power solutions.
- Manufacturing Capacity Expansion: Bloom Energy's annual production capacity supports up to 5 gigawatts, with management adding capacity at a rate of
See More
Industrial Companies Positioned for AI Investment Opportunities
- BAE Systems AI Integration: BAE Systems has partnered with Scale AI to enhance its AI capabilities for the Department of Defense, which is expected to improve command and control in military operations, thereby gaining a human-machine advantage in future missions.
- GE Vernova Infrastructure Development: GE Vernova's collaboration with Duke Energy to supply 11 natural gas turbines for data centers is projected to drive its 2026 revenue to $9.3 billion with a net income of $4.7 billion, indicating strong market demand.
- Vertiv Market Growth: Vertiv's partnerships with Caterpillar and Nvidia aim to develop advanced cooling systems, with projected net sales for 2026 expected to reach between $13.5 billion and $14 billion, significantly up from $10.2 billion in 2025, reflecting ongoing demand in data centers.
- Long-Term Investment Potential: Despite short-term volatility, BAE Systems, GE Vernova, and Vertiv all demonstrate strong long-term growth potential, particularly against the backdrop of rapid advancements in AI and data center infrastructure, attracting investor interest.
See More
Artificial Intelligence Boosts Revenue in Industrial Sector
- BAE Systems AI Integration: BAE Systems has partnered with Scale AI to enhance its AI capabilities for the Department of Defense, which is expected to strengthen its competitiveness in electronic warfare and cybersecurity, potentially leading to higher revenue growth in the future.
- Strong Performance of GE Vernova: GE Vernova reported $9.3 billion in revenue and $4.7 billion in net income in its Q1 2026 earnings, with stock price up nearly 59%, highlighting its critical role in data center infrastructure, promising sustained returns for long-term investors.
- Vertiv's Market Expansion: Vertiv's collaborations with Caterpillar and Nvidia are driving innovation in data center cooling and energy optimization solutions, with projected net sales for 2026 expected to reach between $13.5 billion and $14 billion, while its stock price has surged over 100% in 2026.
- Long-term Potential of AI Market: The global AI market is projected to grow from $390 billion in 2025 to $3.4 trillion by 2033, indicating that despite short-term volatility, there are significant long-term investment opportunities for industrial companies, attracting investor interest.
See More
Major Indexes Rise as Oil Prices Plunge
- Oil Price Drop: Oil prices have significantly declined due to weak global demand, with WTI crude falling below $70 per barrel, which could lower transportation and production costs, positively impacting the overall economy.
- Amazon Buy Signal: Amazon's stock has flashed a buy signal, with analysts predicting strong future growth potential, likely attracting more investor interest and further driving its stock price upward.
- Snowflake Surge: Snowflake experienced a strong rebound in after-hours trading, with its stock price rising, reflecting market optimism regarding its financial performance and future outlook, potentially drawing more institutional investor attention.
- Overall Market Performance: Amid the drop in oil prices, major indexes have generally risen, indicating increased investor confidence in economic recovery, which may promote further capital inflows into the stock market.
See More
Three Strong Momentum Stocks to Buy Now
- Momentum Investment Strategy: Following Richard Driehaus's 'buy high and sell higher' strategy, Micron, Murphy USA, and Vertiv are identified as strong momentum stocks, showcasing continued upside potential that attracts investors seeking exceptional returns.
- Earnings Surprise Performance: Micron boasts an average earnings surprise of 21.7% over the last four quarters, while Murphy USA and Vertiv report 16.6% and 14.7% respectively, indicating strong performance against market expectations and boosting investor confidence.
- Momentum Scores: All three companies have received a B momentum score, reflecting their strong price trends and aligning with investor preferences for high-growth stocks, which could lead to higher investment returns.
- Long-term Investment Potential: Since 2000, Zacks' top stock-picking strategies have outperformed the S&P 500's average gain of 7.7% per year, and the performance of these momentum stocks is expected to further enhance overall portfolio returns, appealing to investors looking for long-term growth.
See More
Soaring Datacenter Demand Boosts AI Stocks
- Surging Market Demand: The soaring demand for datacenters presents unprecedented growth opportunities for AI stocks, particularly as companies like Nvidia and Intel rely heavily on critical technologies, solidifying their market dominance.
- Unique Company Spotlight: A recent report highlights a little-known company dubbed an 'Indispensable Monopoly' that provides essential technology needed by Nvidia and Intel, potentially positioning it as a key player in future market competition.
- Investment Recommendation Analysis: Although Arista Networks was not included in the latest investment recommendations, analysts identified 10 stocks that are currently worth investing in, which could yield substantial returns in the coming years, akin to the historical performances of Netflix and Nvidia.
- Investor Return Comparison: According to Stock Advisor, the total average return stands at 993%, significantly outperforming the S&P 500's 208%, showcasing the strong performance of its recommended stocks and attracting more investor interest.
See More
