Vertiv: The AI Infrastructure Stock Outperforming Nvidia and Palantir

Artificial intelligence stocks continue to dominate, fueled by massive investments. Companies are racing to capitalize on the productivity gains promised by AI.

While giants like Nvidia and Palantir have seen substantial growth, Vertiv Holdings has quietly surpassed them. Vertiv's stock has surged 152% in the last six months.

Vertiv specializes in providing essential infrastructure for data centers. They design and manufacture power and thermal management systems, racks, enclosures, and related software.

These solutions are crucial for ensuring the reliable operation of data centers, especially those handling demanding AI workloads.

Vertiv's accelerating growth is driven by partnerships with innovative companies like CoreWeave. CoreWeave, a rapidly expanding cloud infrastructure provider, relies on Vertiv.

Vertiv provides cooling distribution units for CoreWeave's advanced Nvidia systems. They also offer modeling and thermal simulation to guarantee operational reliability.

The company's revenue for the first half of 2025 jumped 30% year-over-year to $4.67 billion. This suggests Vertiv is on track for significant growth after a 16% revenue increase in 2024.

Vertiv projects organic sales growth of 24% in 2025, signaling strong confidence in its future performance.

Vertiv recently acquired Great Lakes, a provider of data racks and cabinets, for $200 million. This acquisition strengthens Vertiv's presence in the booming AI data center market.

The move is timely, as Vertiv is currently receiving orders faster than it can fulfill them, highlighting strong demand.

Goldman Sachs projects a staggering 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. Even with this growth, a deficit in capacity is likely by the end of the decade.

Despite its impressive gains, Vertiv's stock remains attractively valued at 34 times forward earnings. This is 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.

The Motley Fool's Stock Advisor team recently identified their top 10 stocks for investors. However, Vertiv wasn't among them.

While Vertiv presents a compelling investment case, it's crucial to consider all options before making a decision.