Vertiv vs. AMD: Which AI Stock Offers Better Investment Upside?

Vertiv vs. AMD: The Battle for AI Stock Supremacy

The artificial intelligence (AI) boom is driving unprecedented growth in the tech sector, and investors are eager to identify the next big winners. Two companies at the forefront of this trend are Vertiv Holdings and Advanced Micro Devices (AMD). Both have garnered significant attention and "Strong Buy" ratings, but which offers superior investment upside?

Vertiv Holdings, a leading provider of power, cooling, and IT infrastructure solutions for data centers, has seen its stock surge 53% year-to-date. This growth is fueled by increasing demand for AI infrastructure, as companies like Nvidia and Oracle partner with Vertiv to support their advanced platforms.

Meanwhile, AMD's stock has rallied over 93% year-to-date, driven by optimism surrounding its new AI GPUs and strategic partnerships, including a major deal with OpenAI. While both companies are poised to benefit from the AI boom, Wall Street currently favors AMD for its higher upside potential.

Vertiv's AI-Driven Growth

Vertiv Holdings is riding the wave of AI infrastructure demand, with RBC Capital analyst Deane Dray recently boosting the company's price target to $191. Vertiv's solutions are essential for powering and cooling data centers, which are critical for AI operations.

One key development is Vertiv's advanced platform designs for Nvidia's Rubin Ultra platforms, set to launch in 2027. Additionally, Vertiv's partnership with Oracle highlights its growing influence in the AI infrastructure market.

Vertiv is scheduled to release its third-quarter earnings on October 22, with Wall Street anticipating earnings per share of $0.98, a 29% year-over-year increase. The company has consistently exceeded earnings expectations for the past ten quarters, further bolstering investor confidence.

AMD's Rise in the AI Chip Market

AMD's stock has surged due to its new AI GPUs and strategic partnerships, including a significant deal with OpenAI to deploy 6 gigawatts of AMD Instinct GPUs over multiple years. This partnership underscores the growing demand for AMD's AI chips in the data center market.

Wedbush analyst Matt Bryson recently raised his price target for AMD stock to $270, highlighting the increased confidence in AMD's GPU demand. Bryson projects AMD's AI data center revenues to approach $10 billion in 2026, positioning the company as a major player in the AI chip market.

Wall Street's Verdict: AMD Edges Out Vertiv

While Wall Street is bullish on both Vertiv and AMD, analysts currently see higher upside potential in AMD. The demand for AMD's AI chips appears promising, with the stock scoring a "Perfect 10" on TipRanks’ Smart Score tool, suggesting it can outperform the market long-term.

The average AMD stock price target of $250.22 indicates 7.4% upside potential, compared to Vertiv's average price target of $170.47, which suggests a potential 2% downside from current levels.

Final Takeaways and Investment Strategy

Both Vertiv and AMD are positioned to benefit from the AI boom, but AMD appears to have a slight edge based on analyst expectations. Investors should consider the long-term potential of both stocks, as the AI market continues to evolve and drive demand for advanced infrastructure and chip solutions.