Surging Data Center Spending Benefits Vertiv Amid AI Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Source: NASDAQ.COM
- Surging Market Demand: As spending on data centers skyrockets, Vertiv, recognized as a critical technology provider, is benefiting from the rapid growth of AI, which is expected to drive revenue growth and enhance market share.
- Competitive Landscape: Despite being labeled an 'Indispensable Monopoly', Vertiv was not included in Motley Fool's latest list of top 10 stocks, indicating a cautious market sentiment regarding its future performance.
- Investment Return Comparison: With Motley Fool Stock Advisor's average return at 898%, significantly outperforming the S&P 500's 183%, investors must be cautious in stock selection, as Vertiv's performance may not meet expectations.
- Analyst Insights: Parkev Tatevosian, CFA, notes that while Motley Fool recommends Vertiv, he personally holds no position in the stock, reflecting differing views on the company's future potential.
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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: 314.180
Low
195.00
Averages
206.07
High
230.00
Current: 314.180
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.
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- Market Risk Factors: While strong earnings growth is expected to drive the S&P 500 higher, economic uncertainties stemming from the Iran conflict and potential interest rate hikes could negatively impact the stock market, necessitating cautious investor strategies.
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- Component Changes: In April 2026, Veeva Systems replaced Coterra Energy in the S&P 500 following its acquisition by Devon Energy, illustrating the impact of market dynamics and M&A activity on index composition.
- Future Earnings Expectations: Wall Street analysts project a 25% increase in S&P 500 company earnings for 2026, driven by robust spending on artificial intelligence infrastructure and corporate tax breaks, indicating strong growth potential.
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- Poll Results: A recent Gallup poll reveals that 71% of Americans oppose AI data center construction in their areas, with 48% strongly against it and only 7% in strong support, indicating significant public resistance to such developments.
- Construction Delays: Local opposition has blocked or delayed at least $64 billion in U.S. data center construction projects since 2024, and this figure is expected to rise as more projects face local zoning boards, highlighting the critical role of local governance in project approvals.
- Nuclear Solution: Nuclear company Oklo is building its first small modular reactor prototype, expected to provide 75 MW of power sufficient for about 50,000 homes, and has partnered with Vertiv to develop a cooling system that serves both the data center and the reactor, enhancing energy efficiency.
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- 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.
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- 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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- 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.
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See More
S&P 500 Future Outlook and Performance Insights
- Historical Performance Review: Over the past 20 years, the S&P 500 has achieved an annual return of 9.3% excluding dividends, while the total return including dividends reached 768%, demonstrating its strong position as a benchmark for the U.S. stock market.
- Future Growth Expectations: Wall Street analysts project a 25% increase in earnings for S&P 500 companies in 2026, up from 14% in 2025, primarily driven by robust spending on artificial intelligence infrastructure and corporate tax breaks.
- Market Risk Factors: While strong earnings growth is expected to drive the S&P 500 higher, economic uncertainties stemming from the Iran conflict and potential interest rate hikes could negatively impact the stock market, necessitating cautious investor strategies.
- Investment Recommendations: When considering investments in the S&P 500 index, investors should also explore other potential stocks, as the Motley Fool analyst team has identified 10 stocks that could yield significant returns in the coming years, highlighting diverse investment opportunities in the market.
See More
S&P 500 Index Outlook for the Future
- Historical Performance: Over the past 20 years, the S&P 500 has delivered an annual return of 9.3% excluding dividends, underscoring its reliability as a benchmark for the U.S. stock market.
- Component Changes: In April 2026, Veeva Systems replaced Coterra Energy in the S&P 500 following its acquisition by Devon Energy, illustrating the impact of market dynamics and M&A activity on index composition.
- Future Earnings Expectations: Wall Street analysts project a 25% increase in S&P 500 company earnings for 2026, driven by robust spending on artificial intelligence infrastructure and corporate tax breaks, indicating strong growth potential.
- Economic Uncertainty: While analysts are optimistic about the S&P 500's future performance, the economic uncertainty stemming from the Iran conflict and potential interest rate hikes could negatively impact the stock market, prompting investors to proceed with caution.
See More
Public Opposition to AI Data Centers Disrupts Construction Plans
- Poll Results: A recent Gallup poll reveals that 71% of Americans oppose AI data center construction in their areas, with 48% strongly against it and only 7% in strong support, indicating significant public resistance to such developments.
- Construction Delays: Local opposition has blocked or delayed at least $64 billion in U.S. data center construction projects since 2024, and this figure is expected to rise as more projects face local zoning boards, highlighting the critical role of local governance in project approvals.
- Nuclear Solution: Nuclear company Oklo is building its first small modular reactor prototype, expected to provide 75 MW of power sufficient for about 50,000 homes, and has partnered with Vertiv to develop a cooling system that serves both the data center and the reactor, enhancing energy efficiency.
- Market Outlook: Although Oklo's business plan and technology remain highly speculative, Gallup's findings show that nuclear power plant construction is 18 percentage points more favorable than AI data centers, suggesting that if Oklo successfully launches its nuclear-powered data centers, its stock could become a significant long-term investment opportunity.
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
