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

The artificial intelligence boom has investors scrambling to identify the next big winner. Two companies, Vertiv Holdings and Advanced Micro Devices, are garnering significant attention and "Strong Buy" ratings. But which offers superior upside?

Vertiv's AI-Fueled Growth

Vertiv Holdings is experiencing tailwinds thanks to the increasing demand for AI infrastructure. RBC Capital analyst Deane Dray recently boosted Vertiv's price target to $191, reaffirming a Buy rating. Vertiv provides essential power, cooling, and IT infrastructure solutions for data centers.

Demand for Vertiv's AI infrastructure has propelled the stock up 53% year-to-date. A key development involves Vertiv's advanced platform designs for powering Nvidia's Rubin Ultra platforms, set for a 2027 launch. Vertiv also announced a major partnership with Oracle.

Upcoming Earnings and Analyst Expectations

Vertiv is scheduled to release its third-quarter earnings on October 22. Wall Street anticipates earnings per share of $0.98, a 29% year-over-year increase. Revenue is projected to grow by 25% to $2.58 billion. Notably, Vertiv has consistently exceeded earnings expectations for the past ten quarters.

Analyst Optimism and Potential Downside

Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock. This is based on 15 Buys, two Holds, and one Sell recommendation. However, the average VRT stock price target of $170.47 suggests a potential 2% downside from current levels.

AMD's Rise in the AI Chip Market

Advanced Micro Devices' stock has surged, fueled by optimism surrounding its new AI GPUs and strategic partnerships. The stock has rallied over 46% in the past month and 93% year-to-date. A significant deal with OpenAI involves deploying 6 gigawatts of AMD Instinct GPUs over multiple years.

Analyst Upgrades and Revenue Projections

Wedbush analyst Matt Bryson recently raised his price target for AMD stock to $270, reiterating a Buy rating. Bryson highlighted that new agreements have boosted confidence in AMD's GPU demand. He projects AMD's AI data center revenues to approach $10 billion in 2026.

Wall Street's Verdict: AMD Edges Out Vertiv

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

Final Takeaways and Investment Strategy

Overall, Wall Street has a Strong Buy consensus rating on Advanced Micro Devices stock. The average AMD stock price target of $250.22 indicates 7.4% upside potential. Both companies are positioned to benefit from the AI boom, but AMD appears to have a slight edge based on analyst expectations.