Vertiv: The AI Infrastructure Stock Outperforming Nvidia and Palantir

Vertiv Leads AI Infrastructure Stock Surge

Vertiv Holdings has emerged as a standout performer in the AI infrastructure sector, with its stock surging 152% over the last six months. This remarkable growth has outpaced industry giants like Nvidia and Palantir, driven by Vertiv's critical role in supporting data center operations amid the AI boom.

The demand for AI infrastructure has skyrocketed as companies invest heavily in artificial intelligence to boost productivity. Vertiv, a specialist in data center infrastructure, has capitalized on this trend by providing essential power and thermal management systems, racks, and enclosures that ensure the reliable operation of data centers handling AI workloads.

Core Business and Strategic Partnerships

Vertiv's success is rooted in its core business of designing and manufacturing infrastructure solutions for data centers. Its partnerships with innovative companies like CoreWeave, a rapidly growing cloud infrastructure provider, have accelerated its growth. CoreWeave relies on Vertiv for cooling distribution units and thermal simulation services, which are crucial for maintaining the operational reliability of its advanced Nvidia systems.

"Vertiv's ability to deliver cutting-edge cooling solutions has been a game-changer for our operations," said a spokesperson for CoreWeave. "Their technology ensures our systems run efficiently, even under the most demanding AI workloads."

Financial Performance and Growth Projections

Vertiv's financial performance reflects its strong market position. The company reported a 30% year-over-year revenue increase for the first half of 2025, reaching $4.67 billion. This follows a 16% revenue growth in 2024, and Vertiv projects organic sales growth of 24% for 2025, indicating confidence in its future performance.

The recent acquisition of Great Lakes, a provider of data racks and cabinets, for $200 million further strengthens Vertiv's presence in the AI data center market. This strategic move comes as Vertiv struggles to meet the surge in demand, with orders outpacing its ability to fulfill them.

Future Growth Potential

The future of AI infrastructure looks promising, with Goldman Sachs projecting a 165% increase in AI-fueled power demand in data centers by 2030. This surge will be driven by the expansion of data center capacity to handle AI workloads. McKinsey estimates that data center capacity could quadruple between 2023 and 2030, yet a deficit in capacity is still likely by the end of the decade.

Despite its impressive gains, Vertiv's stock remains attractively valued at 34 times forward earnings, lower than the U.S. technology sector's average price-to-earnings ratio of 52. With a PEG ratio of 0.91, the stock appears undervalued relative to its potential earnings growth over the next five years.

Investment Considerations

While Vertiv presents a compelling investment case, it is important for investors to consider all options. The Motley Fool's Stock Advisor team recently identified their top 10 stocks, but Vertiv was not among them. However, Vertiv's strong financial performance, strategic acquisitions, and critical role in the AI infrastructure sector make it a company worth watching.

"Vertiv is well-positioned to benefit from the growing demand for AI infrastructure," said an industry analyst. "Its ability to deliver reliable and efficient solutions for data centers will be key to its continued success."